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Employee Bonus Invested in an LLC , Which Loaned Funds to the Employer, Is Not a “Rebate,” the Supreme Court Holds

By Rita Latsinova on October 27, 2014
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In LaCoursiere v. Camwest Development, Inc., No. 88298-3, the  Washington Supreme Court  construed the  Washington wage rebate act,  chapter 49.52 RCW (“WRA”).  CamWest paid the plaintiff, a former manager, several bonuses during his employment.  Pursuant to his employment agreement, a portion of plaintiff’s bonus was directly invested in a related  LLC that was established to loan money to CamWest for real estate investment and development.   When CamWest terminated plaintiff’s employment before his capital investment fully vested, he lost a portion of his investment in the LLC. The Washington Supreme Court affirmed the  dismissal of plaintiff’s claim, finding that even though the bonuses constituted “wages,” there was no rebate of those wages that violated the WRA  because plaintiff’s unvested interest reverted to the LLC and not to CamWest.

Photo of Rita Latsinova Rita Latsinova

Rita Latsinova is a partner practicing in Stoel Rives’ Litigation group. Her experience includes complex commercial litigation, constitutional law, class actions, international arbitration and general appellate practice in state and federal courts.

Read more about Rita LatsinovaEmail
  • Posted in:
    Employment & Labor
  • Blog:
    Notice of Appeal
  • Organization:
    Stoel Rives LLP
  • Article: View Original Source

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