Well, let's say there are two co-founders who start a company they are bootstrapping. They don't pay themselves for the first 3, 6, 9 months or maybe even a ye

Well, let's say there are two co-founders who start a company they are bootstrapping. They don't pay themselves for the first 3, 6, 9 months or maybe even a year. Isn't that typical? Then let's say they have a dispute, with one having to leave after a year working together. The departed co-founder files a claim against the company for unpaid "wages." Now, the two co-founders had knowingly worked together for that year for equity - they were bootstrapping. But the departed co-founder has a slam-dunk case against the company for unpaid wages and probably waiting time and other penalties (as well as attorneys' fees). I think most people on here would think that's absurd. But that's the reality. And in California, not only is the company liable, but the remaining founder may be personally liable, as well. I sympathize with the idea that you shouldn't hire anyone until you can pay. But does the co-founder situation I described make clear the problem?