Legal Question in Business Law in California

When a company is not doing well is it ok for the owner not to pay the highest paid employees and only pay the rest? If the company is incorporated does it make it mandatory for the owner to pay? If you are a partial owner can the ceo not pay you? Or in this case the owner calls you a ghost owner and still doesn't pay.


Asked on 1/26/11, 1:00 am

5 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

If you don't get paid, stop working and either 1) file a claim with the Labor Commissioner in Santa Ana; or 2) hire a lawyer and sue him (the law says your attorney fees will be paid by the employer). The fact that the company is incorporated won't insulate the owner from having to pay you. A lawyer might find other issues such as failure to pay overtime. Watch out for legal time limits.

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Answered on 1/27/11, 2:16 pm
Terry A. Nelson Nelson & Lawless

'Employees' must be paid, period, whether also considered 'owners' or not. If not properly paid, you can file a claim with the Labor Commissioner, or a lawsuit if the amount due is enough to make that practical. If serious about getting legal help, feel free to contact me.

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Answered on 1/27/11, 4:29 pm
Daniel Bakondi The Law Office of Daniel Bakondi

It may be a wage and hour, or a lawsuit - multi-party or class action. Send me an email if I may help.

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi, APLC

870 Market Street, Suite 1161

San Francisco CA 94102

http://www.danielbakondi.com

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Answered on 1/27/11, 8:51 pm
Anthony Roach Law Office of Anthony A. Roach

I diagree with the previous responses. Being a coowner of a business is not the same as being an employee. I suggest you speak to an attorney familiar with California's labor law and the current Wage Orders.

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Answered on 1/29/11, 4:39 pm

I have to agree with Mr. Roach. If you are a co-owner, and particularly if you have been paid for work performed in the past and are only being put on no-pay going forward, or if you have been paid enough for the year that it meets minimum wage for the entire year, there are numerous scenarios in which it would be perfectly legal to put you on no-pay and force you to work for profits only, or quit. You would need to review all the details with an attorney to determine if anything illegal is happening and if so, whether you would be entitled to anything more than a few weeks back pay.

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Answered on 1/31/11, 4:25 pm


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