Can an employer legally pay her children as employees if they do not even work in the company?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can an employer legally pay her children as employees if they do not even work in the company?
Asked on January 13, 2016 under Employment Labor Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
It is legal since the owner of a company can decide what to do with company money, who to employ and what (if anything) they need to do as part of their "employment", who to pay and how much, etc. A company's owner controls a company and can do pretty much anything she likes with it. Of course, if the children are not actually working for the company, but the company is deducting their "salary" as a business expense, she may be committing tax fraud, but that doesn't change her basis right to pay them--she just should, for her and their safety, make sure she accounts for the payments correctly.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.