Is refusal to pay salary of minority shareholder a violation of wage and hour laws?

Majority shareholder (70%) and minority shareholder (30%) are shareholders in a law firm with two other employees. Minority shareholder is not involved in management of firm. Minority shareholder received weekly salary for first decade of their partnership. Firm generates little to no annual profit. Majority shareholder has recently refused to pay minority shareholders weekly salary and minority shareholder has not been paid in several weeks. Does this violate state or federal wage and hour laws?

1 answer  |  asked Nov 10, 2018 3:57 PM [EST]  |  applies to Rhode Island

Answers (1)

Charles Kirwan
The RI miniumum wage staute does not exempt professionals from coverage.
For $10.50 per hour, maybe let the overall inequity of 100% non-payment mount, rather than demand a $450 weekly pittance.

The RI Wage Act provides for triple damages and attorneys fees.

Call and we can strategize...

A majority shareholder owes a fiduciary duty to minority shareholders. We'd have to research that a bit to determine that principle's precise application to you.

See http://www.shareholderoppression.com/rhode-island-shareholder-law

Is there a controlling "contract" "agreement" or other pertinent writing on which you reasonably relied that defines periodic/weekly compensation?

Chip Kirwan 401-359-1166 or 1-877 WAGE LAW "I wage law for YOU."
csk@KirwanLaw.net

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posted by Charles Kirwan  |  Jun 16, 2019 2:40 PM [EST]

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