Lead Opinion
Wаlter Mohney, Jr. appeals from the March 1, 1989 order entered by the Court of Common Pleas of Jefferson County granting summary judgment to appellee, Robert M. Hanak, on the issue of appellee’s liability as a corporate officеr for the nonpayment of wages. Appellant contends that appellee, as secretary and corporate counsel for McClure Contracts, Inc. (“McClure”), is considered an employer liable for non-payment of wages under the Wage Payment and Collection Law, (“WPCL”), 43 P.S. § 260.9a.
Preliminarily, we note that our standard of review from an order granting summary judgment is well-established.
In determining whether the trial court erred in granting ... a motion for summary judgment, this court must determine whether the “pleadings, depositions, answers to interrogatories, admissions and affidavits show that there is no genuine issue as to any material fact, and that the moving party is entitled to judgment as a matter of law.” “However, summary judgment may only be entered in those cases which are сlear and free from doubt.” We must determine whether there exists any genuine issue of triable fact. The moving party has the burden of proving that no genuine issue exists as to the material facts, and the record must be examined in the light most favorable to the non-moving party.
In making this determination, we must accept as true all properly pleaded facts, as well as the reasonable inferences which might be drawn therefrom. Furthermore, we shall not disturb the trial court’s decision granting summary judgment unless there has been an error of law, or a manifest abuse of discretion.
Overly v. Kass,
The trial court determined that appellant was an employee of McClure and was owed back wages, and this determination has not been challenged by appellee during this appeal. The trial court also determined that appellee was not liable under the WPCL as secretary of McClure, since he was a “non-functioning” officer of the corporation, and therefore, he was not included within the class of those intended to be held liable under the WPCL for nonpayment of wages. Appellant contends that this additional requirement is contrary to the intent of the legislature and the plain meaning of the statutory language.
Appellant argues that the parties liable under the WPCL include those within the definition of “employer,” as set forth in 43 P.S. § 260.2a.
In support of this argument, appellant notеs that we have imposed civil liability on corporate officers for unpaid wages under the WPCL without inquiry into their actual functions or responsibilities. In support, appellant relies upon Amalgamated Cotton Garment and Allied Industries Fund v. Dion,
Appellee argues that holding any or all officers or agents employing a person liable could be so broad as to includе any corporate officer, or agent, regardless of his level or function. Consequently, appellee continues, this interpretation is too broad and unreasonable to be in accord with the legislature’s actual intent. See 1 Pa.C.S. §§ 1921(с)(4-6), 1922(1), (legislature does not intend absurd results); Goodman v. Kennedy,
In Laborers Combined Funds v. Mattei, supra, we stated:
Thus, we see no logic in imposing the brunt of this financial fiasco on those so attenuated from the core of the fault as to be absolved from any wrongdoing, i.e., the union members, and place the obligation on the shoulders of those who make the decisions as to the manner in which the Corporation is managed. The Legislature, in its enactment of the Wage Payment and Collection Law, has not indicated otherwise. See Ward v. Whalen, 18 Pa. D & C.3d 710, 712 (C.P. Allegheny County 1981), wherein it was written, with regard to personal liability of corporate officеrs for default under the Act,
The Legislature had some purpose for including an agent or officer of a corporation employing persons in the Commonwealth within the definition of employer, and the only apparent purposе was to subject these persons to liability in the event that a corporation or similar entity failed to make wage payments. Its reason for doing so is obvious. Decisions dealing with*344 personnel matters and the expenditure of corporate funds are made by corporate officers and it is far more likely that the limited funds of an insolvent corporation will be used to pay wages and that a work force will be reduced while the corporation is still capable оf meeting its obligations to its employees if personal liability is imposed on the persons who make these decisions.
Accord Carpenters Health and Welfare Fund of Philadelphia and Vicinity v. Ambrose, Inc.,727 F.2d 279 , 282-83 (3rd Cir.1983); Amalgamated Cotton Garment v. J.B.C. Co. of Media,608 F.Supp. 158 , 168 (W.D.Pa.1984);
In re Johnston,
Instantly, viewing the uncontroverted evidence concerning appellee’s authority and responsibility in the company, we conclude that the trial court properly found that appellee was not involved in the policy-making decisions of the corporation. Appеllee was the attorney for the corporation and received a small monthly retainer for the legal services performed. He was included in the corporation’s hospitalization plan, owned 50 of the 7,000 shares of issued stoсk, and took minutes at each meeting of the corporation. In addition, he had authorization to sign checks on the corporate checking account. Nevertheless, none of these indicate that he actively participated in decisions or gave advice regarding pay or compensation. Instead, they show that he merely carried out decisions made by others. Therefore, there is no basis for appellee’s liability, other than by virtue of holding office as corporate secretary.
We next address appellant’s argument that the reasoning in Mattei is controlling. The defendant in Mattei was treasurer and secretary of his corporation and one of two brothers who owned all of the corporate stock. He clearly was involved in policy-making as a treаsurer, secretary and forty percent shareholder. Although liability in Mattei was not premised on fault, we find that it was premised on
We prefer to adopt the rational of the U.S. District Court in Central Pennsylvania Teamsters Pension Fund v. Burten,
While we agree that “scienter” concerning nonpayment of wages is not required for civil liability, we hold that evidence of an active role in decision making is required. We thus do not agree with appellant that the legislature intended liability merely by virtue of holding corporate office. See Carpenters Health and Welfare Fund v. Ambrose, Inc.,
Order affirmed.
Notes
. 43 P.S. § 260.9a, in pertinent part provides:
*340 (b) Actions by an employe, labor organization, or party to whom any type of wages is payable ... may be maintained in any court of competent jurisdiction [against his employer].
. 43 P.S. § 260.2a, (definitions), states:
*342 "Employer", includes every рerson, firm, partnership, association, corporation, receiver, or other officer of a court of this Commonwealth and any agent or officer of any of the above classes employing any person in this Commonwealth. [Emphasis added.]
. 43 P.S. § 260.11a, in pertinent part provides:
(b) In addition to any other penalty or punishment otherwise pre-
scribed by law, any employer who violates any provisions of this act shall be guilty of a summary offense and, upon conviction thereof, shall be punished by a fine of not more than three hundred dollars ($300), or by imprisonment up to 90 days, or by both, for each offense____
(c) Where such employer is a corporation, the president, secretary, treasurer or officers exercising corresponding functions shall each be guilty of such summary offense. (Emphasis added.)
Dissenting Opinion
dissenting:
I resрectfully dissent. When the legislature, by statute, imposed personal liability on corporate officers for the wages of corporate employees, it intended, at the very least, to impose such liability upon the secretary of the corporation.
