Cengage Advantage Books: Foundations of the Legal Environment of Business 2nd Edition by Marianne Jennings, Albert Napier, Marianne Jennings

Exercise 9

Hotel Oasis, Inc., operates a hotel and restaurant in southwestern Puerto Rico. Employees filed complaints that they were not paid fully for all hours worked and that they were not paid minimum wage for some hours they worked. When the Department of Labor investigated, investigators discovered two sets of books on hours and wages-one set was used for government officials and the other for what was actually paid. The Department of Labor sought to hold the president of Hotel Oasis personally liable for the back wages. Can it impose personal liability on the officer of a corporation? [ Chao v. Hotel Oasis, Inc., 493 F.3d 26 (1st Cir. 2007).]