Legal Question in Employment Law in California

i am opening a restaurant. And I wanted to hire my mom as a cook, my dad as my accountant and I will be a cashier. We all agreed on not getting wages but having one earning sum, and this is how we always do, even when only my father was working we used his money as ours, so there's no problem here. The only problem is the law. If no one receives wages will there still be a need for paper work? and do I need a workers compensation insurance?


Asked on 1/16/11, 1:13 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

You are so far wrong, you are heading for disaster. Every employee must be covered by WCAB, wages must be paid with withholding's, taxes, etc. Go consult with a local employment law attorney to learn how to do this right to avoid criminal, civil and administrative penalties. Consult with your tax preparer, and your insurance agent.

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Answered on 1/21/11, 5:21 pm


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