Are W2 Employees Protected by their Employer from Lawsuits?

[hondaguy15]

I am in California and work as a W2 employee of a corporation; I work in the capacity of a Recruiter and handle job placements. I was recently named in a lawsuit by a candidate. I was named individually, my boss who is the President was named individually, and the Corporation was named. We were sued for non-disclosure of our clients less than stellar reputation and also because he believed that he was "promised" an interview with our client directly. The candidate drove across several states at his expense only to meet with an HR rep and was turned away, for reasons undisclosed by our client. The candidate sued for reimbursement of travels costs and attorney fees totaling $5K.

My boss met with counsel (without myself present) and was told it was in the best interest of her company to settle the lawsuit. I signed off on the settlement agreement as she requested and she paid the settlement.

My boss, the President of the company, is now demanding that I reimburse her for half of the lawsuit amount because "I" was the person who interviewed this candidate. Even "if" I royally messed up, wouldn't a W2 employee be protected by the corporation? I don't see how I can be held liable for performing my normal job functions. Normally, I believe this is where the professional liability insurance would kick in, which she does not have.

She has threatened my job if I don't pay her back and now she is withholding my commissions from my paycheck until she is reimbursed. At this point, I am seeking other work; however, it may take some time to find a similar position. I don't believe I am liable to reimburse her for the lawsuit and by her withholding my commission without my consent, it is my understanding that she is violating W&H rules.

HELP! Any feedback would be appreciated.

 

[Zigner]

She's not free to withhold wages without your consent.

She IS free to fire you if you don't agree to reimburse her.

 

[LdiJ]

I am in California and work as a W2 employee of a corporation; I work in the capacity of a Recruiter and handle job placements. I was recently named in a lawsuit by a candidate. I was named individually, my boss who is the President was named individually, and the Corporation was named. We were sued for non-disclosure of our clients less than stellar reputation and also because he believed that he was "promised" an interview with our client directly. The candidate drove across several states at his expense only to meet with an HR rep and was turned away, for reasons undisclosed by our client. The candidate sued for reimbursement of travels costs and attorney fees totaling $5K.

My boss met with counsel (without myself present) and was told it was in the best interest of her company to settle the lawsuit. I signed off on the settlement agreement as she requested and she paid the settlement.

My boss, the President of the company, is now demanding that I reimburse her for half of the lawsuit amount because "I" was the person who interviewed this candidate. Even "if" I royally messed up, wouldn't a W2 employee be protected by the corporation? I don't see how I can be held liable for performing my normal job functions. Normally, I believe this is where the professional liability insurance would kick in, which she does not have.

She has threatened my job if I don't pay her back and now she is withholding my commissions from my paycheck until she is reimbursed. At this point, I am seeking other work; however, it may take some time to find a similar position. I don't believe I am liable to reimburse her for the lawsuit and by her withholding my commission without my consent, it is my understanding that she is violating W&H rules.

HELP! Any feedback would be appreciated.

You need to file a complaint with your state board of labor. As someone already said she has no right to withhold from your wages without your consent.

 

[cbg]

And I'm by no means sure she can legally fire you for refusing to reimburse her. Although, technically, she could fire you because you were sued in the first place, so it may be a distinction without a difference.