Can an employer pay under minimum wage for regular time and overtime if the company participates in profit-sharing?

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Can an employer pay under minimum wage for regular time and overtime if the company participates in profit-sharing?

My boss paid me $400 for 80+ hours of work (including 10 hour days). He says its because the company is profit-sharing and that minimum wage does not apply to me. Is this true or do I have a case against him?

Asked on December 20, 2011 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Even if the company shares out profits to employees, it still must pay at least minimum wage. There are some exceptions for minimum wage, such as for the owners of closely held companies, but merely getting a share of the profits does not make one an owner for this purpose. You may be entitled to compensation for the wages (including overtime) which you should have been paid but were not; it would be worthwhile for you to consult with an employment law attorney who can evaluate you situation in detail and determine your rights and best way to vindicate them.


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