Is it illegal for a prop firm organized at an LLC k-1 to not pay minimum wage?

jtmarlin

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In the United States... assuming that one is a liensed proprietary trader trading firm capital (where there is no deposit and the losses are ultimately the firm's higher class partners), is it illegal if the firm does not give at least a minimum wage draw in motnhs where P&L is flat or down?

I know that there was a lawsuit over a decade ago against Schonfeld/Opus for exactly this. Are These prop shops that are organized as LLCs skirting the law and misclassifying their traders when in fact, their traders are employees? Keep in mind that the trader trades ON-SITE at the company and the company provides capital, trading access, trading platforms, and services (bloomberg, thomson... free of charge to the trader)
 
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