Under the business judgment rule, shareholders cannot hold agents, directors, or officers personally liable for any financial losses if they acted in good faith. In many other scenarios, though, CEOs are not shielded from personal liability. If you serve as one of the officers or directors of a company, a business lawyer can explain the specific scenarios in which you’ll be responsible should an issue arise. In the meantime, here are some of the most common situations that may yield a culpable CEO.

3 Scenarios in Which CEOs Can Be Held Liable

1. Environmental Violations

If an organization does not comply with environmental law, those in charge can be held liable. Common environmental violations include late-night dumping, improper treatment or disposal of hazardous waste, tampering with emission control systems, and exceeding pollutant limits.

2. Payroll Violations

While every scenario is different, courts have established a precedent that holds managers, supervisors, directors, and officers personally liable for violating the Fair Labor Standards Act. This federal law mandates minimum wage and overtime pay eligibility, among other standards.

3. Discrimination or Harassment

Lawsuits involving discrimination or harassment are inherently complicated, so it’s wise to hire a business lawyer should you find yourself embroiled in one. Even if you were not the actual perpetrator, you could be considered responsible for fostering a work environment that allowed such conduct.

If you’re facing some kind of legal dispute at work, turn to a business lawyer at Lee, Livingston, Lee, Nichols & Barron, P.C. to determine exactly what’s at stake. This AV-rated firm can trace its roots back over 100 years. Serving clients throughout Alabama, their office is located in Dothan. Today, their primary practice areas include civil litigation, family law, wills and estate planning, and personal injury law. Various members of their team are affiliated with the Alabama Defense Lawyers Association, the Alabama State Bar Association, the American College of Trial Lawyers, and the International Association of Defense Counsel. To schedule your first meeting with a business lawyer on their team, reach out online or call (334) 792-4156.