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I believe the applicable rule depends on whether they are classified as non-exempt vs exempt, and hourly vs salaried. I doubt he was ever supposed to be paid hourly. If he was a co founder/owner this sounds more like an issue of who had control over various functions and was money being taken out by the other owner in a manner that violated fiduciary duties - not wage/hour issues.
There's no exclusion from labor laws because you're a founder. That said, mature company labor/employment compliance isn't realistic for tiny startups.
Candidly, if this is what the co-founder is hanging their hat on, something is very wrong. They likely have stronger arguments.
Even though AI makes up cases, it sometimes process accurate law and is a good start
Some titles are automatically exempt based on work responsibilities. What was the person's title and are they listed as such on corp filings?
So what he wants to sue himself for not paying himself?
No. He was sued by his former partner and the company they founded for breach of fiduciary duties, conversion, etc. We hit them with a wage and hour counterclaim. I did find a LASC case, Trellis Research v. Thaler. Same facts and Thaler won on the wage and hour cross-claim.