4 ms·
Does that work even if the companies incorporated in Delaware?
by eddsh1994 4y ago
Does that work even if the companies incorporated in Delaware?
- stingrae 4y agoyes.
- xenospn 4y agoWouldn’t be very effective if it didn’t.
- eddsh1994 4y agoWell an amendment in 2017 to the General Corporation Law of the State of Delaware added Section 115 which explicitly permits Delaware startups to adopt in its certificate of incorporation a requirement that all internal corporate claims are exclusively held in front of a Judge in Delaware. Several cases in California have upheld this. So it's not exactly a crazy question to ask if this would work for YC startups employees.
- deleted 4y ago[deleted]
- dragonwriter 4y agoInternal corporate claims are claims by the corporation against officers and shareholders with regard to their duties to the corporation. It does not apply to claims by employees against the corporation under foreign state wage and hour laws, nor could it.
- eddsh1994 4y agoThanks!
- dllthomas 4y agoOn the one hand, of course in this case it applies. On the other hand, let's not pretend CA government doesn't sometimes pass things that aren't very effective.
- aaomidi 4y agoCalifornia fortunately doesn’t give a shit.
- bcrosby95 4y agoLabor law generally applies where the employee lives. Otherwise companies would just incorporate in <fucked country> and be able to do whatever they want.
- anon291 4y agoYes, Delaware has no jurisdiction over events that take place in California, or vice versa. A delaware corporation hiring an employee in California means that it is subject to the laws of California solely when it comes to its relationship with that employee.
- deleted 4y ago[deleted]