There are many ways to run afoul of labor laws and spook your investors—one of the most common for startups is “creative” pay practices. In this video, Fenwick employment litigation partners Dan McCoy and Sheeva Ghassemi-Vanni discuss common misconceptions about worker pay, the risks related to alternative and deferred compensation arrangements and how to avoid them.
Note: For 2019, exempt (salaried) employees in California must make a minimum salary of $49,920 (for startups with 26 or more employees) or $45,760 (for startups with 25 or fewer employees). The one big exception is engineers, who must make at least $94,603.25 in California for 2019. These rates typically increase on an annual basis, so please contact counsel for confirmation.
For more employment law insights, also see this video: Is My New Hire an Employee or a Contractor? Key Factors for Startups to Consider.