Legal Question in Employment Law in Washington

Unpaid work

I worked for an employer and I agreed verbally to work without pay for several months and I did so.

Then we put the agreement in writing stating that when the Company could afford to it would pay the back wages. The Company went under, are the owners responsible for this contract personally?


Asked on 5/22/07, 3:49 pm

2 Answers from Attorneys

Merry Kogut Key Peninsula Law

Re: Unpaid work

I hate to say this, but it depends. You are more likely to succeed in going after the owners if the company was not set up as a corporation, but, even then, it may be possible.

However, unless the owners have some assets of their own (eg, house, car, money in the bank) there may be no point in trying to go after them (you can't get blood out of a turnip).

Frankly, you have gotten yourself into a bit of a mess and you may want to mark this down as a "life lesson."

If you do want to pursue this, you may want to try Small Claims Court if the amount you are owed is $4,000 or less or if you decide $4,000 is better than nothing. Even if you win in Small Claims Court, however, you still have to be able to collect.

I charge $200/hour myself and would want a $2000.00 retainer - you need to consider whether you may be throwing good money after bad.

Merry

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Answered on 5/23/07, 12:59 pm
Susan Beecher Susan L. Beecher, Atty at Law

Re: Unpaid work

It is illegal for an employee to work without wages. "Volunteer" work is only legal for certain non-profit organizations. Therefore, the contract is not legal, and thus, not binding. That's the bad news.

However, the good news is that because what the owner did was illegal, you would probably be able to collect your back wages from the owner. Much depends on the details of the situation, but you should probably sit down with an employment law attorney and go over the details of what happened with him or her to learn what your rights are.

Of course, the first thing you might try is contacting the owner and letting him or her know that you have learned that the contract was unlawful. He or she might decide to make things right. If so, ask them for something in writing that spells out clearly what taxes are withheld.

I am assuming you are not also an owner in any way. If you are, then the above does not apply.

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Answered on 5/22/07, 5:07 pm


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