Does a Sole Proprietor, Stockholder, or Partner Have to be Paid the Prevailing Hourly Rate?
In the construction industry, there are many small companies where the owner is a sole proprietor and bids for public and private jobs. Partnerships sometimes have the partners working on the jobs as craftsmen. Owners may be members of a limited liability company, or major shareholders, officers, and directors of a small corporation. The question arises frequently as to whether these persons (who are owners of the business) are required to keep time records and be paid the prevailing rate. Workers who are self-employed are not employees under the Fair Labor Standards Act.35 Missouri case law under other statutes or circumstances have agreed that one who is the owner or manager of the business cannot be considered to be an employee.36 Therefore, where the person performing the work on the public construction job is a sole proprietor, partner or a major shareholder with a major ownership part in the business,37 that person should not be an employee who is required to be paid the prevaili
