Labor/Employment,
California Supreme Court
Feb. 8, 2019
High court says payroll companies can’t be held liable for wage violations
The court shot down the legal theory that payroll companies carry liability under contract law for wage violations by clients.
The state Supreme Court shot down the legal theory that payroll companies carry liability under contract law for wage violations committed by companies that use their services in a unanimous opinion Thursday.
In Goonewardene v. ADP LLC, a worker for a travel company sued her employer, Altour International Inc., for various alleged labor law violations including unpaid wages. She also named ADP, which provi...
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Contracts
Goonewardene v. ADP, LLC
Employee should not be viewed as third party beneficiary who may maintain an action against payroll company for alleged breach of contract between the employer and payroll company regardi...
