Lots of startups hire employees for equity only or for less than minimum wage.
According to an HR/employment attorney I know, it’s illegal under California law for someone to agree to work for less than mimimum wage. (not talking about founders) Independent contracting is technically not legal either since the company directs the person’s work. As a result, the current state of affairs is “hire for less than minimum wage and hope you never get caught or sued.” And this person further reports that acquirers have been known to try and lower a price when they do due diligence and discover early employees were paid under less than legal circumstances because the employee/contractor can always come back and sue, even IF they signed an independent contractor agreement.
Why does no one ever talk about this? How is it we’re all ok with this as a community? What is everyone else doing? I want to do the right thing by my hires, my company and the law.