Legal Question in Employment Law in California

My company is located in California and we have a consultant that we pay his fees in 100% stock of the company (works part time on his sch). We have agreed to pay his personal health insurance premiums. Is there any issue with reimbursing health insurance premiums of a consultant?

Second question is whether there is any minimum cash compensation that has to be paid to an employee or if you can pay employees for work in 100% stock.


Asked on 7/25/13, 11:32 am

1 Answer from Attorneys
Kristine Karila Law Office of Kristine S. Karila

You face a risk of being sued if you misclassify the worker as an independent contractor and the worker is actually deemed by law to be an employee. If he/she is actually an employee, you must pay at least $8.00 per of money, no stock. CA has begun to crack down on employers who misclassify their workers. You should consult with an employment law attorney. Many of us offer phone or office consultations for reasonable amount. In addition, if your worker is an indep. contractor, it would be very risky to not have an ironclad written agreement.

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Answered on 7/25/13, 11:50 am


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