4 ms·

Its not a good sign that the CEO didn't give any kind of warning. Pretty bad practice. Not sure what their funding situation, history, types of investors are et

by onebot 6y ago

Its not a good sign that the CEO didn't give any kind of warning. Pretty bad practice. Not sure what their funding situation, history, types of investors are etc. You will need to make your own risk assessment--but from the sound of it so far, it seems high risk. If you decide to stay, I would demand equity, warrants, and/or some kind debt contract. If the company goes under, it would give you more power to be a debtor--not that means anything to help get your funds.

shoo 6y ago
> not a good sign that the CEO didn't give any kind of warning. Pretty bad practice I agree. If management knew they might not be able to make payroll this month they should have laid people off last month & paid up any/all outstanding wages. The fact that they didn't means they are making decisions that do not respect their employees interests or existing employment contracts. I'd stop work immediately, quickly make copies of any documents (timesheets, email trails etc) capturing some evidence of days of work you have done that have not yet been paid for, and switch to full time job searching for an actual job. Send brief written communication that you regard any previous employment agreement as broken since company is unable to fulfill its side of agreement by paying wages, state how many days unpaid wages you are owed and request payment. When applying for new jobs, if asked why you are looking, frankly state that you are looking for work as your previous employer was a startup that ran out of money to cover payroll. Anyone who is vaguely professional will immediately understand. For another point of view, see: https://www.askamanager.org/2012/09/my-company-isnt-paying-us.html https://www.askamanager.org/2012/09/my-company-isnt-paying-u...
notahacker 6y ago
The lack of warning is the big issue. I think 'deferred pay' is a bad idea anyway: if you're taking founder level risk by working unpaid in the hope of future funding you should get founder level upside. But at least on the occasion 'deferred pay' was suggested as a future possibility for me to decline, it was done as exploring possibilities if the money doesn't come in exercise, not we're not going to pay you for the work you've done this month, but if you carry on working for free we might pay you if we ever have the money. I still made it clear I was happier reducing my contracted hours, including to zero.

by onebot 6y ago

shoo 6y ago

> not a good sign that the CEO didn't give any kind of warning. Pretty bad practice I agree. If management knew they might not be able to make payroll this month they should have laid people off last month & paid up any/all outstanding wages. The fact that they didn't means they are making decisions that do not respect their employees interests or existing employment contracts. I'd stop work immediately, quickly make copies of any documents (timesheets, email trails etc) capturing some evidence of days of work you have done that have not yet been paid for, and switch to full time job searching for an actual job. Send brief written communication that you regard any previous employment agreement as broken since company is unable to fulfill its side of agreement by paying wages, state how many days unpaid wages you are owed and request payment. When applying for new jobs, if asked why you are looking, frankly state that you are looking for work as your previous employer was a startup that ran out of money to cover payroll. Anyone who is vaguely professional will immediately understand. For another point of view, see: https://www.askamanager.org/2012/09/my-company-isnt-paying-us.html https://www.askamanager.org/2012/09/my-company-isnt-paying-u...

notahacker 6y ago

The lack of warning is the big issue. I think 'deferred pay' is a bad idea anyway: if you're taking founder level risk by working unpaid in the hope of future funding you should get founder level upside. But at least on the occasion 'deferred pay' was suggested as a future possibility for me to decline, it was done as exploring possibilities if the money doesn't come in exercise, not we're not going to pay you for the work you've done this month, but if you carry on working for free we might pay you if we ever have the money. I still made it clear I was happier reducing my contracted hours, including to zero.