Re: Incorrect Citation
No, you cannot be cited for driving on a suspended license when you were not driving. However, according you your original post, that isn't what happened. What you said was that the cop gave you a citation for expired tags...which they were. So, the question of " whether or not it is LEGAL to cite someone for a suspended license if they are not the actual driver of the car" is moot...that's not what happened.
It sounds like someone in the court clerk's office screwed up during data entry and typed the wrong code into the computer. The judge needs time to research that this is, in fact, what happened and you weren't simply BSing him in court. Did you bring your original citation into court and show him what the cop actually cited you for?
As to the other question in your OP, no, you're not going to get the court to reimburse you for taking time off work.
Behind the badge is a person. Behind the person is an ego. This is as it should be, person at the center and ego to the back.