Legal Question in Employment Law in California

The practical answer is "yes," because what are you going to do, sue your own corporation for wage and hour violations? The bigger issue, really, is that your business and compensation models appear to be HUGELY tax disadvantaged. Why in heavens name would you pay all the extra taxes of being employees, when you can just elect S-Corp tax status and be paid as if you were partners, with the legal protections of the corporate form? You REALLY need to hire a good tax accountant before you create a huge tax burden for no reason. Your issues are tax and financial, not legal, at least for now.