Massachusetts High Court Addresses Investors’ and Boards of Directors’ Liability Under the Wage Act

Investors and members of boards of directors concerned about liability under the Massachusetts Wage Act, M.G.L. c. 149, § 148, can breathe a little easier after the Supreme Judicial Court’s (SJC) decision in Segal v. Genitrix, LLC, No. SJC-12291 (December 28, 2017). In Segal, the SJC refused to hold investors and individual directors individually liable for a company’s failure to pay wages to an employee because they were not empowered to act as “agents having the management” of the company.