Legal Question in Employment Law in Georgia
I have been employed witha compnay for over 2 yars and this past May I was promoted to a Director position. The company is currently having financial problems and is unable to pay staff who leave the company. As part of my duties I hire new employees on. IF the employees are not paid and sue, can they sue me? Will I face any IRS or legal trouble based on what the company does?
2 Answers from Attorneys
In some cases, directors of a company can be sued for what a company does. If the company has financial problems anyway, you may have a very good reason to leave yourself.
If you plan to stay as a director, do not do so unless they have at least a million dollars or more of director's insurance protecting you. No one should serve as director of any company absent such insurance.
In addition to officer and director liability, you may very have IRS problems if the company is not paying its employment taxes (and often that is happening at a company with financial problems). Individuals who have the authority to direct where company funds are used and make the decisions to not pay taxes are often found personally liable to the IRS. You can google "responsible person" for more information to see if you might be at risk.
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