I’m not going to speculate on your company’s specifics, but “it happens all the time” that…
Kate Bertash
91

The reality is that startups that run out of money are out of money — there is no value in suing the dead carcass. With regard to FLSA violations there is no rule you can’t run out of money — it happens ALL of the time — CEOs of properly formed corporations aren’t personally liable for going out of business.

If a person is both the CEO and the owner of a business AND commits FLSA fraud by purposefully misclassifying his workers he can be classified as the “employer” personally. In the case of venture backed startups the CEO is not an “owner” as classified by the court and thus wouldn’t be classified as the “employer” for purposes of the law.

Look, very early stage startups aren’t for most people …

Show your support

Clapping shows how much you appreciated Alexander Muse’s story.