Legal Question in Business Law in Indiana

compensation for time worked for free

I worked for a start up company for 4 months (Feb-May 2006)with the verbal agreement that once the company was up and running I would be compensated. The company got financing in May and changed the company name. So the guy that financed the company says he does not owe me because that was the old company. The company is regulated by the FDA so in order to open their doors they had to have procedures written. I worked approximately 580 hours.

Is it legal for a company to make verbal promises for compensation then change the company name and all promises are null and void? The new company is an LLC the original company was not. I was unjustly terminated in Sept of 2006. Now I would like to be compensated for all the work I did for free. I was not the only person that was working for free with the verbal understanding for compensation. are verbal agreements for compensation legal and binding?


Asked on 10/09/06, 12:39 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: compensation for time worked for free

If you can prove you did the work, and that the new company is the successor in interest for the old company, then you may succeed in a complaint to collect your wages. You might first contact the Indiana Department of Labor for assistance. http://www.in.gov/labor/wagehour/wagehourlaws.htm

If they cannot help you, then you should confer with an attorney. Good luck.

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Answered on 10/09/06, 1:08 pm


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