Can My Employer Pay Me in Something other than Cash?

Can My Employer Pay Me in Something other than Cash

The answer to whether your employer can pay you something other than cash is “no.”

The Fair Labor Standards Act (FLSA) requires employers to pay employees their wages in cash or “facilities.”

A facility is lodging, board, meals, transportation, or something else that is customarily given to employees, mostly for the benefit of the employees. An employer that pays employees partly in “facilities” may deduct only the reasonable cost of such facilities.

However, keep in mind that some states set a dollar limit on the amount an employer can deduct for these purposes. Some examples include for the cost of providing a meal or lodging.

If your employer is paying you a form of currency that can be used only at the company or business, this practice is illegal. “Store credit” is not something customarily given to employees. This can be a violation of minimum wage laws.

David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (800) 401-4466 or by visiting http://payablaw.com/

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