"Sweat equity" is the term usually given to the time and effort a cash-strapped entrepreneur puts into a business in order to earn his/her ownership share -- as opposed to contributing money for it. It's not a term that you usually associate with an employee. Employees are paid a salary for the work they put in -- they generally don't have any "equity" (ownership) rights in the company.
If your husband is truly an employee, he should be receiving his full salary, less any legal deductions for taxes, Medicare, etc. If he isn't, there had better be a r-e-a-l-l-y good reason for it, like contributing to the employer's stock option plan.
But even those can be risky if he works for a privately-held company. You and your husband (together) should speak to your financial advisor and an employment attorney to make sure this arrangement is on the up-and-up.
Nina L. Kaufman is an award-winning business attorney, author and speaker. For more than 15 years, she has successfully navigated thousands of small businesses through the legal hurdles they face in starting and running their companies. Under her
AskTheBusinessLawyer.com brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and
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