Managers liable for payroll even after a bankruptcy
A federal appellate court in San Francisco has ruled that the managers of a company under bankruptcy, chapter 11 or 7 are still liable for employee’s unpaid wages under the federal law. The 9th US circuit court of appeals has made this ruling, overturning a lower court ruling on the issue in the case of Boucher v/s Shaw.
The case has been remanded for further proceedings. The court also affirmed the previous lower court ruling that the managers were not liable under the Nevada state law.
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http://www.businessinsurance.com/article/20090729/NEWS/907299980
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