Employer
General Partnership
California
Can partners hire employees in a general partnership?
I am a small business owner considering setting up a general partnership with another business owner. We are both looking to maximize our resources and capabilities by hiring employees, but I am unsure of the legal implications. Can partners in a general partnership hire employees, and what are the legal requirements for doing so?
1 Attorney answer
Answer
Employer
California
Michael S.
ContractsCounsel verified
Partners in a general partnership have apparent authority to take any action on behalf of the partnership, including hiring employees. This is true even if the partners have agreed between themselves that one a partner does not have the authority to hire employees. A partnership that limits the authority of one partner would give rise to a claim by one partner against the other, but third parties can rely on the apparent authority of a partner to make hiring decisions.
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