How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 39043
Experience:  Retired (mostly)
Type Your Business Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

In 2000 I employed a physician to my practice. In 2002 his

Resolved Question:

In 2000 I employed a physician to my practice. In 2002 his contract as an employee ended and he was given the opportunity to start up his own practice. He chose to stay with my practice. We never signed any agreements that would have made him a partner or shareholder but I treated him as one. I compensated him his own gross revenue minus his overhead. Officially he was was an employee who I was treating like an equal partner because of respect and no obligations to him. As the managing physician I charged him $6000/month. Six months into the new arrangement he accused me of stealing that money from him. This took place in 2002. At the time he said that there were no such verbal agreement. I told him that if he started to manage his own practice there would not be any fees. He agreed and the payments stopped. Needless to say that he never did manage his share of the practice and I continued to do so. In 2002, I also told him that he can order an audit and if any wrong doings were discovered, I will correct them. He never did the audit. In 2005 I closed the practice and we officially officially form another practice which we are equal shareholders. 1 month ago, in 2011, he is once again accusing me of the 2002 issue and is asking that I compensate his $36000. I dismiss his accusation, however does he have any legal grounds against me? And if so what would that be? Other than a financial ledger showing a $6000/month payment to fee for management fees there is no other evidence.
Appreciate your answer.
Submitted: 6 years ago.
Category: Business Law
Expert:  socrateaser replied 6 years ago.
Under WV law, an employer cannot deduct the employer's cost of doing business from the employee's wages. So, regardless of your agreement, if you were paying this person as an employee, then you could not deduct the $6,000 as a management fee.

However, the statute of limitations to recover unpaid wages in WV is 5 years. Goodwin v. Willard, 406 S.E.2d 752, 185 W.Va. 321 (WV Sup. Ct. 6/28/91). So, to the extent that the deductions were made more than 5 years ago, they are barred and cannot be recovered (assuming you plead the statute of limitations as an affirmative defense, in the event you are sued).

Hope this helps.

NOTICE: My goal here is to educate others about the law. I am always available to answer your follow-up questions after you click Accept – however, if you do not click Accept, the website gets paid, and I receive nothing. This is true, even if you are on a subscription plan. So please click Accept, so that I will be able to continue to provide this service for others in the future.

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

socrateaser and other Business Law Specialists are ready to help you