This is regarding back pay due me from 2013-2015 the company has made and offer for employees to sign a promissory note and turn our back pay into stock is this legal?
Settling a wage claim is legal. The settlement can be whatever value, in whatever form. that the employee is willing to take to give up their rights to sue the company.
There are several things you should consider before you jump into this deal.
First, before you do so, it would be prudent for you to have a consultation with an employment attorney so that you know the value of the release you will be asked to sign. You may be owed far more than you realize.
Second, know that a promissory note is nothing more than a different legal obligation than the Labor Code, and probably without some of the benefits you have in litigating a Labor Code violation case. You are simply trading one good right to sue with a far less valuable right to sue.
Third, if the company goes bankrupt, a promissory note will likely have a different level of priority in the bankruptcy than employee wage claims. You will be essentially agreeing to stand further back in the line of creditors with the general unsecured creditors, and thus likely receive nothing if the company goes insolvent.
Speak to an attorney.
Good luck to you.
This answer should not be construed to create any attorney-client relationship. Such a relationship can be formed only through the mutual execution of an attorney-client agreement. The answer given is based on the extremely limited facts provided and the proper course of action might change significantly with the introduction of other facts. All who read this answer should not rely on the answer to govern their conduct. Please seek the advice of competent counsel after disclosing all facts to that attorney. This answer is intended for California residents only. The answering party is only licensed to practice in the State of California.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline