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Roger, Attorney
Category: Legal
Satisfied Customers: 31737
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I work network marketing company in their corporate office.

Customer Question

I work for a network marketing company in their corporate office. After seeking approval, I signed my husband up as a independent distributor. There is no written policy stating that an employee or their spouse can't be an independent distributor. My husband has since built a down line and invested thousands of dollars into the business. There are several employees that have spouses signed up as distributors. However, today, we were all told that a policy is in the works that will not allow employees or their household to be independent distributors. We have a choice to end our business or face losing our jobs. We are all in a panic that our residual income stream, integrity and business are being destroyed when we had approval to start this business in the beginning. What are our legal options? We are all ready to fight for our rights! Thank you!
Submitted: 2 years ago.
Category: Legal
Expert:  Roger replied 2 years ago.
Hi - my name is ***** ***** I'm a litigation attorney. Thanks for your question. I'll be glad to assist.
Does your husband's company have a contract guaranteeing work for a certain period of time?
Customer: replied 2 years ago.
Hi, Roger
I work for the network marketing company's corporate office and signed my husband up as an independent business owner. He is I-9.
Customer: replied 2 years ago.
The corporate office executive team is now saying that they are writing a policy that will no longer allow an employee or their spouse to be IBOs (Independent Business Owners).
Expert:  Roger replied 2 years ago.
Thanks for the information.
The employer has the right to enact a policy, and it also has a right to either "grandfather" in existing independent contractors or not.
If the employer does not grandfather in existing contractors with relatives in the company, then you may be facing a difficult choice.
You'll just have to try and work with the employer and ask that they grandfather your contract in and be exempt from this rule.
Customer: replied 2 years ago.
Thank you. What is our difficult choice? If our spouses have built a business, invested in the company and have an income stream, it seems black and white to me that enacting a policy after the fact is unethical and grounds for legal action. Do we?
Expert:  Roger replied 2 years ago.
The employer has the right to enact a policy like this....and unless your husband's company has a contract that guarantees him work for a certain period of time, there's likely no legal recourse since you're guaranteed no business.
The best action would be to try and get the business to grandfather your husbands business in.
Customer: replied 2 years ago.
I appreciate your response. I think are communication wires might be a little fuzzy. I'll make a local call around here.