Illinois Supreme Court rejects corporate officer pay liability.(CONSTRUCTION CORNER)(Brief article)

The Illinois Supreme Court has ruled that a corporation's sole shareholder, officer and director, as well as a separate corporation he controlled that performed substantial administrative support for the first corporation, were not liable for unpaid employee vacation and severance pay. The facts are unusual, but the principle is important. Following an accountant's embezzlement, a company was forced to default on bank loans, and the bank foreclosed, assuming control of the company. The company closed, and the employees were terminated without their accrued but unpaid vacation pay and severance pay. The employees sued the shareholder/ officer/director personally, as well as the two corporations. The Illinois Supreme court upheld complaints against the company which had gone out of business, but said the individual officer was not liable under the Illinois Wage, Payment and ...