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Buy a husband get the wife free?

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artarecords

Junior Member
What is the name of your state (only U.S. law)? WA

My husband and 2 partners incorporated and bought a bar, with my husband being the GM. Initially, I was helping part-time for free as a good-will act (I did want their business to succeed!); but when I ended up working double-shifts 5 to 7 days a week, I submitted a W4 form and got my first paycheck. The money was very tight though, the partners had to add some funds to the business account, so I kept postponing sending my hours to the CPA reasoning that I can give them the credit of time. We had to pay the cook, bartenders, get the inventory, do all those repairs and maintenance, pay the huge rent... I could wait, I thought.

Later the corp decided to change the business direction (and pour a lot of extra money into it) which my husband couldn't agree with, so he withdrew from it (the details of his compensation are being still worked out...). As for me - I was told since there was no initial agreement(?) that I would be paid, they owe me nothing - despite them seeing me working there daily, my W4 filed with their CPA, and my paycheck on their papers during the spring audit.

I tried to present (in writing) my reasonable expectations of being paid for over half-year's work to the owners; I also suggested that they could pay me in installments not to strain the business budget with a lump sum. To no avail... They keep claiming they didn't know I was _working_ for them (what else was I doing there for 14 hours a day?), or that I would require being paid for it. They seem to consider me a 'package deal', since my husband was a member of the corporation.

I still can not believe that they would just flat refuse to pay me anything! Not even talking overtime, or the fact that I was doing much more for them than just being a bartender... In retrospect, I understand that being too emotionally involved in the success of that business was what set me up for the problem I'm facing now. I was making my decisions at the time having their business success in mind too much, prioritizing it over my cash flow. But I didn't realize it would end up leaving me with nothing at all...

By my calculations, I am owed between 16 and 20K. What do I do? Any input would be more that welcome!
 


Zigner

Senior Member, Non-Attorney
Whatever the business pays you will directly affect your husband's "compensation" (buy-out) of the business. Feel free to cut off your nose to spite your face...
 

artarecords

Junior Member
I appreciate your quick response!

I would agree with you - under regular circumstances. Unfortunately, whether I am paid or not, all my husband is getting out of it is some equipment he brought in originally, and an equivalent of the new GM's salary prorated over the time of his work for the business. I didn't want to touch upon that (another long story), but the present value of the business is not factored into the amount of his compensation.

So, the present owners get to keep everything I've done and it's cash equivalent, since neither I nor my husband benefited anything from it.
 

Dave1952

Senior Member
When your husband was the general manager, did he hire and fire employees? I'm guessing yes. Did he hire you? I'm guessing yes, once again. So, file a complaint with Labor and Industry. They should investigate and make a decision. It does look strange that you are filing so late.
 

artarecords

Junior Member
Hi Dave, thanks for chiming in! Yes and yes to both :)

My uncertainty comes from the fact that I am not quite sure where I stand here from the law's perspective: I never incorporated with the other 3 partners, but I am married to 1 of them. Did that automatically make me a part-owner? The F700 Form instructions say "We do not accept wage complaints against… A business in which you are a part owner..."

Filing late: I would probably be still waiting and not submitting my hours if my husband were still part of the business, because in September the business just started peeking from under the water (the bar had to survive the slow times May through August). There was physically not enough money to pay for everything, so I held back until the business started on the uptrend. I (stupidly) felt fully comfortable doing so, just filing the hours, until the business could compensate me and not go bankrupt :) Since the hubby was basically pushed out of the business, I felt I do not owe my good will to them, and asked to finally be paid.
 

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