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There is zero legal way to operate like that in the United States. If you employ someone, you must put them on a normal payroll schedule, must pay them at least
by dangrossman 12y ago
There is zero legal way to operate like that in the United States. If you employ someone, you must put them on a normal payroll schedule, must pay them at least minimum wage, and must begin withholding taxes and the other usual payroll responsibilities. In California specifically, you must receive at least two paychecks per calendar month. Failing to do any of that is a violation of state and federal labor laws, and no contract/agreement/waiver can supersede this -- you can't do employee work for free (or for promises of future wages) even if you want to.
http://www.dir.ca.gov/dlse/faq_minimumwage.htm http://www.dir.ca.gov/dlse/faq_minimumwage.htm
http://www.dir.ca.gov/dlse/FAQ_Paydays.htm http://www.dir.ca.gov/dlse/FAQ_Paydays.htm
- aledalgrande 12y agoI totally get that, Dan. People are in need of a job and sometimes even the perspective of a future salary lures them into unfair deals, so that's why founders still can get away with no payment and not get reported.