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  1. #1
    Join Date
    Nov 2015
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    22

    Default Wage Claim for Co-Owner

    My question involves labor and employment law for the state of: MT

    Can a co-owner file a wage claim if they are paid hourly, salary or take a owners draw? They were discharged and may have to be bought out of their share but are they still eligible for a wage claim against the LLC for hours worked outside of their normal work hours. They were on a set schedule and went from hourly, to owners draw, to salary back to hourly.

  2. #2
    Join Date
    Mar 2013
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    17,514

    Default Re: Wage Claim for Co-Owner

    Quote Quoting toofast3
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    are they still eligible for a wage claim against the LLC for hours worked outside of their normal work hours.
    That leads me to conclude that your question is not whether you CAN file a wage claim but whether you are exempt from overtime pay.

    Being exempt or non-exempt has nothing to do with how you are paid, it has to do with what you do.

    Your state DOL website has information on various types of employees and whether they are exempt from overtime. Read them at:

    http://erd.dli.mt.gov/labor-standard...g-a-wage-claim

    If you are exempt form overtime and got paid your regular pay, then don't bother with a wage claim.

    If you are non-exempt, go ahead and file the wage claim and let the DOL determine if your ownership interest makes any difference.

  3. #3
    Join Date
    Oct 2014
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    7,628

    Default Re: Wage Claim for Co-Owner

    A member of a LLC doing work for the LLC is either an employee of the LLC or an independent contractor. The typical factors used for employee/independent contractor determination would need to be examined to determine if the member was an employee or not. Next, if the member is an employee, the question is whether the employee is exempt or not. For that, you first look at the special rule for business owners. Under that rule, an owner of a business entity who owns at least 20% of the business and actively participates in management decisions is an exempt employee. If the member is not exempt under that rule, then one would need to see if any other exemption applies. If no exemption applies, then the employee must be paid at least minimum wage and must be paid overtime for any time worked over 40 hours in the work week. That employee certainly could bring a wage claim if he was not properly paid.

  4. #4
    Join Date
    Nov 2015
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    22

    Default Re: Wage Claim for Co-Owner

    Thanks guys. It's not just overtime I'm inquiring about since the employee/owner typically worked 30 hours per week. Does the exempt rule apply for under 40 hours? Thanks again

  5. #5
    Join Date
    Oct 2014
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    7,628

    Default Re: Wage Claim for Co-Owner

    Quote Quoting toofast3
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    Thanks guys. It's not just overtime I'm inquiring about since the employee/owner typically worked 30 hours per week. Does the exempt rule apply for under 40 hours? Thanks again
    If the employee is exempt then the federal minimum wage law does not apply, either. Note that if the employee (exempt or not) or contractor was not paid as agreed he or she may always sue for the breach of contract in addition to anything else.

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