40% owner of a company has backwages that are not being paid
I am a 40% owner of a company. I am owed about 150,000 dollars in salary and commission that was not paid to me as the cashflow was not good. However, we have received a lumpsum payment of 200,000 dollars from one company, and another 75,000 dollars from other companies due to sales and annual maintenance contracts. The majority shareholders transferred about 250,000 dollars out of the company, and are not paying my wages. What options and choices do I have? Do I have less rights because I am a 40% owner for recovering my wages if I go to the Wage Board.
1 answer | asked Sep 5, 2002 2:29 PM [EST] | applies to California
Answers (1)
you're ok, but hurry!
you have the right to pursue the dollars to wherever they were transferred by the majority shareholders. they are "employers" under the labor code. your rights to wages are not affected by your stock ownership; otherwise no esop-owned company employees could collect their wages!
you need to have an attorney help you secure those dollars, however. and of course, your status as an employee will likely be terminated.
consult your dept. of labor standards enforcement to file a wage claim.
if you are in southern california, please give me a call.
janet m. koehn
805-658-0655
posted by Janet M. Koehn | Sep 5, 2002 3:47 PM [EST]
you have the right to pursue the dollars to wherever they were transferred by the majority shareholders. they are "employers" under the labor code. your rights to wages are not affected by your stock ownership; otherwise no esop-owned company employees could collect their wages!
you need to have an attorney help you secure those dollars, however. and of course, your status as an employee will likely be terminated.
consult your dept. of labor standards enforcement to file a wage claim.
if you are in southern california, please give me a call.
janet m. koehn
805-658-0655
posted by Janet M. Koehn | Sep 5, 2002 3:47 PM [EST]
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