Legal Question in Employment Law in California

Do wage and hour laws apply to significant shareholders/corporate officers who are also employed by that company? My husband is a shareholder and officer with a restaurant. He is also the general manager. Several of his paychecks have bounced and he has not received reimbursement for his monthly expense reports. For a time, they were paying him $2k a month toward the debt but no longer. The other board members now say the debt (unpaid wages and unpaid expenses equalling $100k) are a \"loan\" and that they will not be paid. Does he not receive the same wage protections as the other employees? It seems that they must at least pay his wages.


Asked on 7/30/09, 2:27 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Any employee has the right to be paid his compensation per agreement. Unless he has a written employment agreement, or his pay is fixed by ByLaws and policies, the company can cut his pay effective immediately, but not retroactively and certainly not the way you state. If he can't resolve it, he can sue for it. Feel free to contact me for the legal help he needs in pursuing this. It may be possible to resolve it without suit simply by having your attorney threaten them. If not, suit is it. Be wary for 'retaliation' against him, which would be 'illegal' and provide another cause of action for a lawsuit.

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Answered on 7/30/09, 3:44 pm


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