Legal Question in Employment Law in California
I work for a startup in Austin, as an employee in California, the company is registered to do business in CA. I am VP of sales & marketing. My contract is commission payable on revenue generation, one month after revenue generated. I have not been paid commission - ever - since my start date of 1 July 2009. Overdue now, per COO, is $109K. I asked CEO several times about it but was a "team player" as we all sucked it up during startup. The company now is on the verge of Ch11, the CEO is in prison(federal; unrelated - child porn), new investors are about to come in - they are our primary customer and don't want to go Ch7 due to ownership issues and a state (not CA) emerging technology loan; but want to keep the company going (technology, IP). I've been told I'll be "right-sized" out of the company - laid off. Probably at month-end. (They won't need sales for 12 months as they restructure.) My understanding is that contracted, unpaid salary & commissions all become due when I leave, whether voluntary or involuntary. Recommendations?
1 Answer from Attorneys
I am amazed you have let this go so long without taking action, unless you agreed tp a 'deferral' of income, or worse, a 'waiver' of income during start up. If you did, oh well, risks taken sometimes come back to haunt.
To pursue this, you will need to file a lawsuit and prove what you claim through paperwork, witnesses, etc. Filing suit will make your claim one that can not be ignored in the takeover/sale. Even if the company goes BK, you are a 'priority' creditor and will make a claim in the BK court. If you are serious about trying to collect this, feel free to contact me for the legal help and representation you need.