Start-up companies are often in cost-saving mode, but when it
comes to employees, be prepared to pay at least a minimum wage.
Many companies forget about it.
All companies, regardless of size, must pay either the
applicable state minimum wage (currently $8.00 per hour in
Massachusetts) or $455 per week of salary for someone who qualifies
under one of the so-called "White Collar" exemptions from
overtime (Executive, Professional or Administrative). If you choose
the hourly option, the Company must also pay 1.5 times the hourly
rate for all "overtime" (i.e., all hours over 40 in a
workweek).
There is no basis in law to defer an employee's compensation
for extended periods time, and no basis to compensate purely on
equity or options, if the employee is not making at least the
required minimum wage. Employees cannot waive these rights in a
contract or otherwise. In one case, an employee of a start-up who
unambiguously agreed by contract to defer payment of wages
