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Legal??? South Carolina

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  • Legal??? South Carolina

    I know someone who works for a business which I will call X. The owners of business X decides to open another business on the side, which I will call Y. Is it legal to have a worker working at business X start working at business Y as well, without filling out the proper paper work or giving the worker any sort of raise?
    Last edited by idolfan; 09-24-2008, 06:18 PM.

  • #2
    The only time that an employer ever has to give an employee a raise is when the minimum wage is raised and the employee would otherwise be below the new rate.

    Whether or not any paperwork needs to be filled out (I assume you mean tax withholding forms, etc.) is going to depend on how the two business are structured.
    I am not able to respond to private messages. Thanks!

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    • #3
      Agreed. Past that, it is not uncommon for companies with different names to share the same Federal Employer Identification Number (FEIN). It is not uncommon for related employers with different FEINs to have something called a Common Paymaster arrangement. It is quite common for a parent company to handle accounting and other services for "child" companies who have different FEINs. All of these situations are quite legal if done correctly. I have done central payroll for multiple FEINS at several different employers in the past. Sometimes my costs were billed out to the subsidiaries and sometimes not, but in all cases my salary was (legally) reported on the parent company only.

      Of course it is also common for employers to not have a clue what they are doing legally. But an employer getting jacked up with IRS/ICE/whoever for failure to jump through the correct hoops (assuming that is what happened) does not by itself get any more money to the employee.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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