It's not my job to find out whether a record label pays what they should, that's for the label, the artist and all the fucking lawyers.
I just make sure to buy releases from legit labels, because at least there's a better chance that the artist will get paid.
By legit, I think he means the company that has the rights to the original source material, not a person who can buy an album off eBay and copy it. Between the two I'd buy from the former but not the latter.