Sabastian Hafner joined a start-up business with a business plan focused on making breads without common food allergens, such as wheat, yeast, dairy, and gluten, to be marketed in a major metropolitan area. The five founders of the business, including Sabastian, selected the limited liability company (LLC) as their form of business organization. The Articles of Organization for the limited liability company were duly filed with the secretary of state. The Operating Agreement simply provided that founding member Jillian Lopez would be the sole manager of the firm, and it set a salary for her at $40,000 per year. She hired employees to perform production, delivery, and sales work. Sebastian and the other three members spent time nights and early mornings "pitching in" at the bakery. After two months of diligent work, Sabastian, a second-year MBA student, sought back pay for the 40 hours each week he spent at the bakery during the previous eight weeks. He pointed out to the other members of the LLC that state law authorizes employees to sue for their wages. What are Sabastian's rights regarding pay for the service he performed for the LLC?

  • CreatedJune 06, 2014
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