Dahl Law Group - February 2026

Code 558.1 Claims Avoid Financial Disaster

Protect Yourself From Labor

• Enforcement Through Claims: Violations may be reported through class actions, PAGA claims, or audits, which could expose business owners to both legal battles and personal financial consequences. COMMON TRIGGERS FOR PERSONAL LIABILITY Personal exposure under Labor Code Section 558.1 usually originates from procedural errors rather than deliberate wrongdoing. Frequent triggers include: • Misclassifying employees as exempt or independent contractors. • Delayed or incomplete final paychecks. • Missing meal or rest break premiums. • Inaccurate deductions or wage statements.

Running a business in California presents opportunities, but also carries personal risk. Under Labor Code 558.1, owners and managers can be held personally liable for certain wage and hour violations, turning operational mistakes into personal financial threats. ESSENTIAL POINTS OF LABOR CODE 558.1 • Covers All Individuals in Control: It’s not just business owners; officers and key managers who directly influence compensation practices can also be personally liable. • Penalties Can Include Personal Assets: Unlike corporate liability, Labor Code 558.1 exposes personal assets, including savings and property, to cover penalties and back pay resulting from violations. • Unintentional Violations Count: Negligence, such as improperly classifying employees or failing to file wage records on time, can result in personal liability, even without intent to violate the law.

to personal property, including savings, homes, and investments. The financial impact goes beyond business operations; it threatens long-term wealth and stability. HOW TO PROTECT YOUR ASSETS: EFFECTIVE PROTECTION STRATEGIES FOR BUSINESS OWNERS Once personal exposure becomes a possibility, proactive planning is critical. Business insurance and entity formation alone are not enough. Adequate protection should include: • Asset Protection Trusts • Entity Layering • Exemption and Financial Structuring • Regular Compliance Reviews SECURE YOUR BUSINESS AND PERSONAL ASSETS WITH THE RIGHT STRATEGY Owning a business shouldn’t put everything you’ve built at risk. At Dahl Law Group, we help California business owners and executives protect both their personal assets and their company through proactive legal strategies.

WAGE AND HOUR VIOLATIONS PENALTIES

Penalties for wage and hour violations in California can include back pay, interest, civil fines, and attorneys’ fees. For business owners covered under Labor Code 558.1, those liabilities can extend

Vodka Cream Pasta

SUDOKU

Ingredients • 1 tbsp extra-virgin olive oil • 1 tbsp butter • 3 cloves garlic, minced • 2 shallots, minced • 1 cup vodka • 1 cup chicken stock

• 32-oz can crushed tomatoes • Coarse salt and pepper • 16 oz penne rigate pasta

• 1/2 cup heavy cream • 20 basil leaves, torn

Directions 1. In a large skillet over moderate heat, sauté oil, butter, garlic, and shallots for 3–5 minutes. 2. Add vodka in a steady stream and heat for 2–3 minutes to reduce by half. 3. Add chicken stock and tomatoes, bring to a light boil, then reduce to a simmer. 4. Season with salt and pepper. 5. In a large pot, cook pasta to al dente in salted boiling water while sauce simmers. 6. Stir cream into sauce until it bubbles and remove from heat. 7. Drain pasta, toss with sauce and basil leaves, and serve with sides of your choosing.

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