Can my daughter get into trouble if the company she works for is operating with no business license?

UPDATED: Jan 26, 2017

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Can my daughter get into trouble if the company she works for is operating with no business license?

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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