As of January 1, 2016, any individual who is an owner, director, officer, or managing agent of an employer may be held liable as the employer if he or she violates, or causes to be violated, wage and hour provisions. Cal. Lab. Code § 558.1. The California Supreme Court has defined "managing agent" as an employee who "exercise[s] substantial discretionary authority over significant aspects of a corporation's business." White v. Ultramar, 21 Cal. 4th 563, 577.
Amid reports that business owners in Los Angeles County are more optimistic about this year's business conditions compared to last year's, owners still share some serious concerns, not the least of which is government regulation in the form of the citywide minimum wage hike.
Many struggling businesses need the protections offered by Chapter 11 bankruptcy, but Chapter 11 is not the right choice or even feasible for every business with heavy debt. Chapter 11 is highly procedural and costly in terms of money and time, and there may be better options for debtors and creditors alike.
If you're starting a corporation or a limited liability company in California, a key step in the process is filing your articles of incorporation. Your corporation's existence is legally established when you file the articles with the California Secretary of State, which charges a fee for the filing. Currently the fee for a general stock corporation is $100, and the fee for an LLC is $70.