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socrateaser
socrateaser, Lawyer
Category: California Employment Law
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Experience:  Retired (mostly)
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I work at a company where there are 3 owners. 2 have never

Resolved Question:

I work at a company where there are 3 owners. 2 have never received a paycheck and one (who is the project manager also) receives a weekly paycheck and belongs to a union and pays dues.

Is it possible to pay all 3 of them as executives on a monthly pay cycle, now that the company can afford it? I would like to know, could the one owner who belongs to the union, receive a separate pay check as an executive?

Thanks.
Submitted: 3 years ago.
Category: California Employment Law
Expert:  socrateaser replied 3 years ago.
Hello,

Sorry for the delay, but I was out of the office.

Some of your facts are a bit confusing. A manager of an organization cannot be a union member, because that would be a conflict of interest. Unions are intended to represent nonmanagement employees collectively bargain with employer management.

So, I'm not really sure what's going on in this employment relationship.

That said, there is nothing to prevent the organization from paying wages in any manner it wishes.

If I"m not understanding, please feel free to clarify your question, and I'll try to help.

Hope this helps.


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!

Customer: replied 3 years ago.

I guess the clarification I am looking for.. Is it possible to hold 2 job titles and receive different pay for each?

 

The project manager who is also an owner currently receives a paycheck and pays union dues (because occassionally he is the general foreman electrician).

 

Is it possible to pay a separate paycheck as an executive due to him being part owner that can be excluded from the union dues?

 

 

Expert:  socrateaser replied 3 years ago.
Is it possible to pay a separate paycheck as an executive due to him being part owner that can be excluded from the union dues?

A: The issue is entirely controlled by the collective bargaining (union) agreement with the employer. As I said earlier, I don't see how the union would permit a person to simultaneously represent management and labor -- but, it's up to the union to decide.

As a practical matter, there is no means by which the union can discover that someone is receiving a paycheck as both a manager and union worker, unless the employer discloses the conflict. Based upon that, I would say that the answer is "Yes -- but, don't get caught, because it could negatively affect the employee's union benefit rights as well as the employer-union relationship."

I'm really not equivocating here. The problem is that without a comprehensive review of the union contract, it's impossible to be definitive about what kinds of negative outcomes could occur. But, it's not a crime to do what you propose, so once again, my admonishment would be simply, "Don't get caught, and there won't be a problem."

Hope this helps.


And, if you need to contact me again, please put my user id on the title line of your question (“ToCustomerrdquo;), and the system will send me an alert. Thanks!

socrateaser, Lawyer
Satisfied Customers: 33914
Experience: Retired (mostly)
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