QUESTION

Can my partners in my LLC keep me from coming to work because two employees who are their friends threaten to quit if I come back to the office?

Asked on Oct 12th, 2014 on Business Law - Kentucky
More details to this question:
A year ago I mortgaged my home for $130,000 and invested $24,000 from my savings to open up a staffing agency with my son and daughter-in-law. They have invested $5,000 total of their money. I am the CFO, my son is the COO and my daughter-in-law is the CEO. My daughter-in-law hired three of her friends to work for us. Two of them told my daughter-in-law that if she and my son didn't tell me to stay out of the office that they would quit. I was told by my son and daughter-in-law not to come back to the office and since then they have also cut me off from all information regarding the business. This whole year I was the only one who didn't receive a paycheck because the extra funds weren't there until two weeks ago which was a week before I was told to not come back to the office. Can they do this and do I have any legal recourse?
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1 ANSWER

Appellate Practice Attorney serving New York, NY
What does the llc's operating agreement provide?  Assuming you have none (it can be oral), or that it is silent on the issue, members of an llc have no inherent right to be employed by it.  Moreover,  again unless the operating agreement provides otherwise, a vote of 2/.3 of the llc's equal members would be sufficient to fire an employee.  However, while you may have no right to work for the llc, you have a right, as a member, to all of the llc's financial information, and, in general terms, to be treated the same as other llc members with regard to distributions - if your son and daughter-in-law work for the llc, they are entitled to reasonable employment compensation and you, who no longer work for the llc, are not; however, you are entitled to comparable membership contributions.  You can sue to get the information, for your share of any distributions paid the other members, and possibly, if the other members have overreached, to dissolve and liquidate the llc.
Answered on Oct 13th, 2014 at 1:55 PM

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