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My daughter has been working for a company since April 2016. She just found out that the company has no business license in the state of CA.
Asked on January 26, 2017 under Employment Labor Law, California
Answered 8 years ago | Contributor
No, an employee is not liable for her employer's failure to obtain a business license (or for other "employer-level" failures, like the employer not filing or paying taxes, not paying any licensing fees, etc.; employees are generally only liable for their own wrongful acts). Her biggest risk should be that the company could be shut down, putting her out of a job; and she in theory could be required to testify against her employer if there should be any litigation or investigation and the other side wants her to testify.
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