Enter a Partnership or Aquire Lost Wages? - ADVISE NEEDED!!!

[Daniella_de_laCruz]

State is Montana.
I started working at a bakery and cafe that made $80/day total. In 3 years I brought it to $800/day total. I have now been working 5 years keeping the sales and customer base up. I am in a verbal contract to own 25% of the store and have been told that something in writing is coming.... that was 8 months ago. I have been working these 5 years with no raise, no overtime paid (although I have record of many, many hours overtime over 5 years) because she cannot afford to pay overtime, all the while building her business, customers, and product. There is no movement on the owners end to make the verbal contract a solid reality. I know I could make up the lost wages, over time, if I had more control over the cafe/bakery sales and overall decision making processes as a partner. My question is, do I have an option to file some sort of suit against her to acquire my lost wages and not enter a partnership at all? I would love to be part owner of something I help build as an employee... or I could collect thousands of lost dollars and venture elsewhere.

 

[bcr229]

You do not have to sue for your overtime pay, you can file a wage claim with the state.
http://erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/filing-a-wage-claim

Speaking as a business owner... we typically get paid last. Also, unless you own at least 51% of the company it's likely you won't be making any business decisions. Finally, I wouldn't buy into any company that couldn't afford to pay its employees what they are due.

 

[adjusterjack]

I would love to be part owner of something I help build as an employee...

That's never going to happen. She has no intention of ever making you a partner. You've been scammed. You're very naïve if you don't recognize that.

or I could collect thousands of lost dollars and venture elsewhere.

File a wage claim with the state. The state will get the money out of her that you were legally entitled to.

Lesson for the future. Never work for promises.

 

[Daniella_de_laCruz]

bcr229 - Your right, she does pay herself last. We typically work together well and remain in constant communication. She says she wants me to be the manager and make more decisions. She is ready to 'step back' because she is not good with confrontation and is really 'just an artist'.... yet is reluctant to let me step up (insecurity maybe?). Also, part of the lost wages is not getting a raise in 5 years... is there anything to be done about that?

 

[Daniella_de_laCruz]

adjusterjack - I recognize that may be the case. Her saying one thing and doing another. Although part of me knows she cannot and does not want to handle the stress of this business. Her mother is bed ridden and she is caretaker, she cannot handle conflict, cannot multitask, is struggling with the books, and is constantly going for walks to 'de-stress' instead of dealing with serious issues. I am tempted to let her be the 'artist' she is and give her an out.... sign this contract and take a break....

 

[quincy]

You will not be compensated for not getting a raise in 5 years, unless there was some sort of written agreement between you and the owner that ensured you a raise of X amount (or something similar).

Are you in a position to buy the business from her or start your own business?

 

[Daniella_de_laCruz]

You will not be compensated for not getting a raise in 5 years, unless there was some sort of written agreement between you and the owner that ensured you a raise of X amount (or something similar).

Are you in a position to buy the business from her or start your own business?

Not outright, I would have to make a payment plan. Ultimately that is what she wants, she's nearing 65 and ready to retire. That is why she says she wants this partnership to happen, she's even wants it in the contract that I will receive 100% ownership if she dies or is terminally ill. Is she scamming me or is she just air headed and lackadaisical?? I am not sure, but I am tired of the waiting game. What to do??

 

[adjusterjack]

She's bullshitting you. There, that plain enough? Playing on your sympathies while she rakes in the money and you get nothing. Even a contract won't mean anything. What will you do if she breaches it? You can't afford to buy the business, you won't be able to afford a lawyer to litigate the contract. And litigation will drive the business into the ground so it's not worth anything even if you win.

What to do? Wake up. Stop throwing good years after bad years and get out. You don't owe her anything.

And file a wage claim on your way out.

 

[quincy]

Not outright, I would have to make a payment plan. Ultimately that is what she wants, she's nearing 65 and ready to retire. That is why she says she wants this partnership to happen, she's even wants it in the contract that I will receive 100% ownership if she dies or is terminally ill. Is she scamming me or is she just air headed and lackadaisical?? I am not sure, but I am tired of the waiting game. What to do??

If you want to purchase the business from her, you could meet with an attorney to see how best to accomplish this goal. You could have the attorney draft for you a purchase agreement that meets your needs and protects both your interests and hers, and see if she will sign it.

Or you could investigate the possibility of getting a small business loan and starting your own business.

I would not sign any written agreement of any kind, however, unless you have your own attorney’s involvement and advice.

 

[LdiJ]

She's bullshitting you. There, that plain enough? Playing on your sympathies while she rakes in the money and you get nothing. Even a contract won't mean anything. What will you do if she breaches it? You can't afford to buy the business, you won't be able to afford a lawyer to litigate the contract. And litigation will drive the business into the ground so it's not worth anything even if you win.

What to do? Wake up. Stop throwing good years after bad years and get out. You don't owe her anything.

And file a wage claim on your way out.

I am sorry AJ, but I think that you might be off base here, possibly way off base. $800.00 a day for any kind of restaurant/eatery/bakery is not "raking in the money", even remotely. That is barely subsistence level. I agree with a lot of the rest of what you said, but if the OP agrees to buy the business on contract, that doesn't mean that the OP would have no remedies if somehow the current owner breeched it. In fact, that current owner would be less protected against breaches than the OP, as the buyer, would be.

 

[Daniella_de_laCruz]

If you want to purchase the business from her, you could meet with an attorney to see how best to accomplish this goal. You could have the attorney draft for you a purchase agreement that meets your needs and protects both your interests and hers, and see if she will sign it.

Or you could investigate the possibility of getting a small business loan and starting your own business.

I would not sign any written agreement of any kind, however, unless you have your own attorney’s involvement and advice.

I know I can get her to sign a purchase agreement, under the right circumstances... I have a few cards in my favor. Another problem is choosing an attorney... I have talked to a few that do not seem diligent. How do you find one that is eager to look for those little details in the law that most overlook due to complacency? I'm looking for the one that says "hey did you know about this clause and that clause will save your ass later" not "well here is the basic draft, good luck and let me know what happens". Do I look for one with the most paralegals? Do I look for a specific rating? Or do I just slip them a couple extra hundred after the consultation?

 

[Daniella_de_laCruz]

I am sorry AJ, but I think that you might be off base here, possibly way off base. $800.00 a day for any kind of restaurant/eatery/bakery is not "raking in the money", even remotely. That is barely subsistence level. I agree with a lot of the rest of what you said, but if the OP agrees to buy the business on contract,

We are a very small business in a tourist town of 500. It IS barely subsistence level, although huge for this little town and the tourists who want quality food and atmosphere. I have options for investors who would help to franchise the concept elsewhere in the state, maybe even Washington, but they tell me like AJ does.... get an actual piece or the whole pie and then we'll talk.

 

[LdiJ]

I know I can get her to sign a purchase agreement, under the right circumstances... I have a few cards in my favor. Another problem is choosing an attorney... I have talked to a few that do not seem diligent. How do you find one that is eager to look for those little details in the law that most overlook due to complacency? I'm looking for the one that says "hey did you know about this clause and that clause will save your ass later" not "well here is the basic draft, good luck and let me know what happens". Do I look for one with the most paralegals? Do I look for a specific rating? Or do I just slip them a couple extra hundred after the consultation?

I think that what you need to do is come to an agreement with your boss to buy the business from her. Whether its done on contract or whether you get a bank loan, I think that is the only way you are going to get anywhere. However, the question is whether or not that is a good financial decision for you long term. On top of that, you have to be sure that the landlord for the premises will be willing to continue to lease to you if you buy the business.

 

[Daniella_de_laCruz]

I think that what you need to do is come to an agreement with your boss to buy the business from her. Whether its done on contract or whether you get a bank loan, I think that is the only way you are going to get anywhere. However, the question is whether or not that is a good financial decision for you long term. On top of that, you have to be sure that the landlord for the premises will be willing to continue to lease to you if you buy the business.

The land is paid for and also in her name, although I am not sure if they are one entity or separate. Most likely she owns it in her name and would sell them together, or separate... I am speculating on that... Thank you, I need look into that more.

 

[Zigner]

I predict that you'd be buying the business and renting the land. That's what a smart person would offer you.