1 vote

getting around the minimum wage law

Quick question:

If I run a company and for Christmas I buy all of my employees their very own LLC corporate identity and then, fire them all, and then bring them back on board thru a fixed-price contract with their new corporate entity, am I no longer obligated to pay minimum wage.

Put another way - if all of my workers are contracted-for CEOs, then I can pay them whatever they accept in the contract, correct?

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yes and no

the IRS may not agree with them being contract/1099 labor vs. W2 labor. If the "employess" bring their own tools of the trade, etc. then you would be in a better position to support your assertion that they are contract/1099 laborers. It also depends on how much you manage and direct their work.

There should be some info about this somewhere on the net.

But that is the right direction to be thinking.