Senate Passes Gavarone Bill Protecting Workers From Government Overreach

COLUMBUS—The Ohio Senate passed Senate Bill 146, sponsored by State Senator Theresa Gavarone (R-Bowling Green), which would codify the common law doctrine of "Piercing the Corporate Veil."

“Workers need to be able to do their job without fear of some government agency suing them personally," said Senator Gavarone. “We have seen far too many instances of government agencies suing workers personally for simply doing their job. This legislation would codify the doctrine of 'piercing the corporate veil' to ensure that workers are not being sued for the violations of the company they work for.”

Senate Bill 146 codifies the common law requirements for a governmental entity to pierce the corporate veil by requiring the government to show all the following:

• An individual exercised such control over the corporate entity that the entity had no separate mind, will, or existence of its own;
• The individual used this control to commit a fraud, illegal, or similarly unlawful act against the governmental entity; and
• The governmental entity sustained an injury or unjust loss as a result.

"The doctrine of 'piercing the corporate veil' has been part of American common law since the founding of the Virginia General Assembly in 1619," added Senator Gavarone. "But overzealous government agencies have been taking legal action against specific individuals for simply doing their job, rather than the corporate entity violating the law. This legislation will ensure that employers, not workers, will be held liable for these violations."

Senate Bill 146 has been sent to the Ohio House for further consideration. 
 

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