Legal Question in Business Law in Indiana

Two companies sharing income?

I work for a small business with around 10 employees. The owner, owns another company. After many conversations with him, it is my understanding that they are both completely separate entities.

The company I work for, we will refer to as C1, does fairly well and is capable of paying bills and payroll. The other entity, which we will refer to as C2, is often short at which point in time C1 ends up making ends meet for C2. This seems unfair to me as an employee because as I view it, if C1 ever encounters financially hard times, any extra monies will be gone in the owners efforts to keep C2 open. I assume, the reason he does not simply write himself a check for C1's profits and deposit them into C2's account is because there is something in our handbook about a percentage being paid towards employees retirement funds if he withdrawals a lump sum and he is attempting to avoid those fees.

Is this illegal? How? And suggestions on advising the owner of what he should be doing or course of action that should be taken?

Thanks!


Asked on 1/14/09, 1:57 pm

1 Answer from Attorneys

Re: Two companies sharing income?

More details would be necesary to render an opinion on legality. However, if you suspect underhanded methods, you should notify your union if you are in one. I would not approach the owner directly unless you enjoy unemployment as that would be a strong possibility

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Answered on 1/14/09, 2:01 pm


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