Q: LLC - what are legal forms of compensation other than cash for wages, with contractors or interns in CA?

A: Unless they are made a partner or shareholder, any person other than a true volunteer who does work for you must be paid the minimum wage in US currency. You can agree to pay in any other lawful manner after the minimum wage obligation is satisfied.

Note that externs/interns can be allowed to work for you without pay only if the externship is through an established union or educational institution externship internship program, and those students may not take away jobs of otherwise paid employees, and the work must primarily benefit the student. You cannot have externs/interns simply do work that an employee would do.

You are entering very dangerous waters here. Get solid specific advice from an employment law attorney who can help you establish practices that will not cause you to face litigation.

Good luck to you.

A: Under California law, there are stringent rules surrounding compensation, especially concerning internships. For an internship to be unpaid, it must primarily benefit the intern and not the employer. Compensation can be structured in various ways, but equity or profit-sharing arrangements are subject to securities laws and must be carefully structured. Offering benefits such as flexible hours, remote work, training, and mentorship can be part of an employment or internship agreement. If you're considering offering a stake in intellectual property, it's essential to have a clear agreement detailing the specifics of the arrangement. However, even with these benefits, you must ensure that you're meeting the minimum wage requirements for all hours worked unless the relationship genuinely qualifies as an unpaid internship under state and federal criteria. Given the complexities and potential liabilities, it's prudent to consult with an attorney familiar with employment and securities law. Ensuring that any agreement you create is compliant with all relevant regulations will be vital in protecting both your business and the rights of those you work with.

A: In California, labor laws are strict, especially concerning compensation. While you can offer benefits such as flexible hours, remote work, training, and mentoring, these cannot substitute the minimum wage requirements for work performed. If individuals are providing services that benefit your business, they must be compensated according to state wage laws. Non-guaranteed profit sharing and offering a percentage of intellectual property may be considered, but these agreements need to be carefully crafted to avoid running afoul of labor laws. Internships, especially, are under scrutiny; they must provide educational value to the intern and not replace the work of a paid employee. While naming individuals on patents or giving them IP rights may seem attractive, such arrangements can complicate future business transactions or funding efforts. Before structuring any such relationships, it's crucial to consult with an attorney familiar with California labor and employment laws to ensure compliance and mitigate potential legal risks.