Sketchy Employee Situation?

searcher profile

September 13, 2024

by a searcher from Harvard University - Harvard Business School in Alpharetta, GA, USA

I talked to a business owner who says that all of his employees have social security numbers, but he's never had to verify them because he has 10 or less employees. He also doesn't pay them overtime, just a commission of some sort in addition to their hourly wage. Sounds very sketchy. Any ideas?

If I buy the business and they turn out to be illegal, I assumed I'd just have to fire them (and the problem is replacing them at once and likely at a higher wage). Do you e-verify the employees in diligence?

0
12
297
Replies
12
commentor profile
Reply by a searcher
from The University of North Carolina at Chapel Hill in Atlanta, GA, USA
If you like the deal, get an M&A attorney to help you. It will be worth the cost.
commentor profile
Reply by a searcher
from Rutgers in Philadelphia, PA, USA
“Verifying an I-9” and using the E-Verify system are two different kings that people often confuse. All employers are required to collect I-9 forms and physically “verify” the documents requested by looking at them. But use of E-verify is optional except for federal contractors and a few other specific cases of business (not based on number of employees)
commentor profile
+10 more replies.
Join the discussion