Fired from my startup – Co-Founder Dispute. What to do?
Hello,<p>I quit my first full time job out of college to Co-found a startup. I would be the first employee of the company as co-founder. I was told that the startup had received funding and that I would be paid $48,000 a year in salary as well as a 10% equity stake in the company. My partner was the only other employee and had 60% equity. I signed both an employment agreement as well as shareholder agreement.<p>Within 6 months, the company had run out of money. Although the company had no money to pay me any longer, my partner sold me on the fact that I was being paid in “sweat equity”. This period was so difficult as I was broke and forewent $65,000 in salary during those months.<p>Despite raising more capital my co-founder said we would not be paying ourselves back wages. My partner had full autonomy and control of the company finances and completely abused his power and misused funds on personal expenses. In 2017 I asked to borrow $10,000 from the company to lend to a struggling family member who was going to pay us back.<p>In early 2018, my partner fired me from the company and offered me 90 days notice. 4 months later, I learn he is still selling the product. So I told him he needed to pay my back wages and he could subtract the money I owed to the company from the wages. Despite a list of legitimate claims my lawyer presented to him based on my legal rights he still refuses to pay, offering no legal basis to counter my claims. He has since been bullying me even kicked me off the company’s board threatening me with jail time and lawsuits.<p>1.	Am I entitled to my back wages after I was fired if I have an employment agreement, even though I own equity?<p>2.	Should I go to arbitration even though it will be a long and grueling process?<p>3.	Should I agree to a buyout of my equity and forget the back wages?<p>4.	Am I out of line withholding the money I owe the company, even though he owes me 3 times the amount in back wages?