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Minority partners in a business, was recieving a salary , now partners want me to continue without pay untilprofits back up!

Knoxville, TN |

llc in tennesse 9 years have been recieving salary for 9 years, co going thru hard times and maj partners do not want to pay my salary , but still want me to work without pay until money picks back up! co gross million thru the years and now hard times set in i am being asked to go without pay!

Attorney Answers 2


What does your Operating Agmt say about compensation? It is not unusual for members of an LLC to work without pay during startup or hard times, but that is normally where all members are more or less equal partners. Do the majority members work the same number of hours that you do? Are they paid for it? Do you think the money will ever “pick up?” Did you get your share of the “millions” during the good years? The point of these Qs is: Do you think you are being treated fairly, i.e. the same as the others? The US constitution prohibits involuntary servitude (slavery), so you do not have to work for nothing unless you want to. Under the terms of the OA they may be able to cause forfeiture of your ownership interest if you don’t work. (OAs generally do not permit that, but yours might.) Is that worth enough for the abuse you are taking? You may need to consult a business lawyer to help you read the OA and advise you, but that should not cost very much.

DISCLAIMER—This answer is for informational purposes only under the AVVO system, its terms and conditions. It is not intended as specific legal advice regarding your question. The answer could be different if all the facts were known. This answer does not establish an attorney client relationship. I am admitted only in California. (Bryant) Keith Martin

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You have to look at what the operating agreement says about this. It will probably say that manager's salary can be changed by vote of X% of the members. This may be unanimous or majority or something in between. Read the operating agreement.

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