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Are employers legally allowed to pay employees in goods and services equal to or greater than the minimum wage?
Are there any laws the require subscription services to be prorated?Are passenger services legally obligated to provide the names of passengers?Are McKenzie Friends Allowed in The United States?Can one legally barter services if each party declares they are donating the service?When can “exact change” policies be enforced?Would the end of “net neutrality” legally allow individual ISPs to block access to/censor sites and services?Is this opinion by the Wage & Hour Division, disallowing fines/salary deductions for lost & damaged property, generally applicable to US employers?Are parents allowed to not pay for their children's surgery?Can a landlord charge for pet rent without pets?Are Police legally allowed to confiscate a Camera and Phone over “suspicious activity”?
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In the United States, full-time employees (not contractors) must be paid a minimum wage per hour. Assuming both parties agree to it, are they legally allowed to be paid in goods and services equal to or greater than the minimum wage?
For example, if a restaurant worker earns a $7.25 minimum wage, would it be legal for another worker to be paid in $7.25 worth of food per hour?
united-states barter
add a comment |
In the United States, full-time employees (not contractors) must be paid a minimum wage per hour. Assuming both parties agree to it, are they legally allowed to be paid in goods and services equal to or greater than the minimum wage?
For example, if a restaurant worker earns a $7.25 minimum wage, would it be legal for another worker to be paid in $7.25 worth of food per hour?
united-states barter
1
Are you just asking whether the federal minimum wage law allows this? Many states have their own minimum wage laws that may have different requirements (and amounts). By the way, the federal minimum wage is currently $7.25 per hour, not $10.
– Nate Eldredge
9 hours ago
1
@NateEldredge Yes, that is what I am asking. I updated the question to reflect the federal minimum wage.
– Evorlor
9 hours ago
Are you asking if a worker can legally agree to this, or are you asking if an employer can unilaterally impose this on a worker who would prefer cash (e.g. "As of next week, you will be paid in crates of Cream of Chicken soup only, based on a survey of local retail prices. I am legally allowed to do this under the Truth in Minimum Wage and In-Kind Compensation Act of 1973. If you do not like this, you can quit!")?
– Robert Columbia
7 hours ago
@RobertColumbia I am asking if this is legal assuming both parties agree to it.
– Evorlor
5 hours ago
1
This page says yes, but does not give references.
– Nate Eldredge
2 hours ago
add a comment |
In the United States, full-time employees (not contractors) must be paid a minimum wage per hour. Assuming both parties agree to it, are they legally allowed to be paid in goods and services equal to or greater than the minimum wage?
For example, if a restaurant worker earns a $7.25 minimum wage, would it be legal for another worker to be paid in $7.25 worth of food per hour?
united-states barter
In the United States, full-time employees (not contractors) must be paid a minimum wage per hour. Assuming both parties agree to it, are they legally allowed to be paid in goods and services equal to or greater than the minimum wage?
For example, if a restaurant worker earns a $7.25 minimum wage, would it be legal for another worker to be paid in $7.25 worth of food per hour?
united-states barter
united-states barter
edited 5 hours ago
Evorlor
asked 9 hours ago
EvorlorEvorlor
3653 silver badges8 bronze badges
3653 silver badges8 bronze badges
1
Are you just asking whether the federal minimum wage law allows this? Many states have their own minimum wage laws that may have different requirements (and amounts). By the way, the federal minimum wage is currently $7.25 per hour, not $10.
– Nate Eldredge
9 hours ago
1
@NateEldredge Yes, that is what I am asking. I updated the question to reflect the federal minimum wage.
– Evorlor
9 hours ago
Are you asking if a worker can legally agree to this, or are you asking if an employer can unilaterally impose this on a worker who would prefer cash (e.g. "As of next week, you will be paid in crates of Cream of Chicken soup only, based on a survey of local retail prices. I am legally allowed to do this under the Truth in Minimum Wage and In-Kind Compensation Act of 1973. If you do not like this, you can quit!")?
– Robert Columbia
7 hours ago
@RobertColumbia I am asking if this is legal assuming both parties agree to it.
– Evorlor
5 hours ago
1
This page says yes, but does not give references.
– Nate Eldredge
2 hours ago
add a comment |
1
Are you just asking whether the federal minimum wage law allows this? Many states have their own minimum wage laws that may have different requirements (and amounts). By the way, the federal minimum wage is currently $7.25 per hour, not $10.
– Nate Eldredge
9 hours ago
1
@NateEldredge Yes, that is what I am asking. I updated the question to reflect the federal minimum wage.
– Evorlor
9 hours ago
Are you asking if a worker can legally agree to this, or are you asking if an employer can unilaterally impose this on a worker who would prefer cash (e.g. "As of next week, you will be paid in crates of Cream of Chicken soup only, based on a survey of local retail prices. I am legally allowed to do this under the Truth in Minimum Wage and In-Kind Compensation Act of 1973. If you do not like this, you can quit!")?
– Robert Columbia
7 hours ago
@RobertColumbia I am asking if this is legal assuming both parties agree to it.
– Evorlor
5 hours ago
1
This page says yes, but does not give references.
– Nate Eldredge
2 hours ago
1
1
Are you just asking whether the federal minimum wage law allows this? Many states have their own minimum wage laws that may have different requirements (and amounts). By the way, the federal minimum wage is currently $7.25 per hour, not $10.
– Nate Eldredge
9 hours ago
Are you just asking whether the federal minimum wage law allows this? Many states have their own minimum wage laws that may have different requirements (and amounts). By the way, the federal minimum wage is currently $7.25 per hour, not $10.
– Nate Eldredge
9 hours ago
1
1
@NateEldredge Yes, that is what I am asking. I updated the question to reflect the federal minimum wage.
– Evorlor
9 hours ago
@NateEldredge Yes, that is what I am asking. I updated the question to reflect the federal minimum wage.
– Evorlor
9 hours ago
Are you asking if a worker can legally agree to this, or are you asking if an employer can unilaterally impose this on a worker who would prefer cash (e.g. "As of next week, you will be paid in crates of Cream of Chicken soup only, based on a survey of local retail prices. I am legally allowed to do this under the Truth in Minimum Wage and In-Kind Compensation Act of 1973. If you do not like this, you can quit!")?
– Robert Columbia
7 hours ago
Are you asking if a worker can legally agree to this, or are you asking if an employer can unilaterally impose this on a worker who would prefer cash (e.g. "As of next week, you will be paid in crates of Cream of Chicken soup only, based on a survey of local retail prices. I am legally allowed to do this under the Truth in Minimum Wage and In-Kind Compensation Act of 1973. If you do not like this, you can quit!")?
– Robert Columbia
7 hours ago
@RobertColumbia I am asking if this is legal assuming both parties agree to it.
– Evorlor
5 hours ago
@RobertColumbia I am asking if this is legal assuming both parties agree to it.
– Evorlor
5 hours ago
1
1
This page says yes, but does not give references.
– Nate Eldredge
2 hours ago
This page says yes, but does not give references.
– Nate Eldredge
2 hours ago
add a comment |
1 Answer
1
active
oldest
votes
As described, no.
Paying employees with benefits instead of money is called in kind remuneration. There are various limits on in kind payments around the world, including the US. Very generally, in kind payments are only allowed for particular industries and occupations, only allowed up to a certain dollar value, and only allowed as a certain fraction of the employee's wages. Furthermore, the value of the benefit can't exceed the actual cost to the employer - a meal that's priced at $7.25 on the menu is sold at a profit, and would be worth less than the menu price as in kind remuneration.
So, given the scenario described, a restaurant employer could not replace 100% of their employee's wages with food sold for the same amount. It's too high a percentage of the wage paid as in kind payment, and the menu price equivalent of the wage would not have sufficient in kind value.
A more detailed description of in kind payment laws can be found here.
1
The document you've linked is 93 pages and covers laws all over the world. Can you point to where it explains this provision of US federal law in particular? I would like to see a citation of a specific US statute / regulation / case where this is established.
– Nate Eldredge
2 hours ago
1
Handy Reference Guide to the Fair Labor Standards Act "Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA."
– David C. Rankin
2 hours ago
add a comment |
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1 Answer
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1 Answer
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active
oldest
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As described, no.
Paying employees with benefits instead of money is called in kind remuneration. There are various limits on in kind payments around the world, including the US. Very generally, in kind payments are only allowed for particular industries and occupations, only allowed up to a certain dollar value, and only allowed as a certain fraction of the employee's wages. Furthermore, the value of the benefit can't exceed the actual cost to the employer - a meal that's priced at $7.25 on the menu is sold at a profit, and would be worth less than the menu price as in kind remuneration.
So, given the scenario described, a restaurant employer could not replace 100% of their employee's wages with food sold for the same amount. It's too high a percentage of the wage paid as in kind payment, and the menu price equivalent of the wage would not have sufficient in kind value.
A more detailed description of in kind payment laws can be found here.
1
The document you've linked is 93 pages and covers laws all over the world. Can you point to where it explains this provision of US federal law in particular? I would like to see a citation of a specific US statute / regulation / case where this is established.
– Nate Eldredge
2 hours ago
1
Handy Reference Guide to the Fair Labor Standards Act "Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA."
– David C. Rankin
2 hours ago
add a comment |
As described, no.
Paying employees with benefits instead of money is called in kind remuneration. There are various limits on in kind payments around the world, including the US. Very generally, in kind payments are only allowed for particular industries and occupations, only allowed up to a certain dollar value, and only allowed as a certain fraction of the employee's wages. Furthermore, the value of the benefit can't exceed the actual cost to the employer - a meal that's priced at $7.25 on the menu is sold at a profit, and would be worth less than the menu price as in kind remuneration.
So, given the scenario described, a restaurant employer could not replace 100% of their employee's wages with food sold for the same amount. It's too high a percentage of the wage paid as in kind payment, and the menu price equivalent of the wage would not have sufficient in kind value.
A more detailed description of in kind payment laws can be found here.
1
The document you've linked is 93 pages and covers laws all over the world. Can you point to where it explains this provision of US federal law in particular? I would like to see a citation of a specific US statute / regulation / case where this is established.
– Nate Eldredge
2 hours ago
1
Handy Reference Guide to the Fair Labor Standards Act "Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA."
– David C. Rankin
2 hours ago
add a comment |
As described, no.
Paying employees with benefits instead of money is called in kind remuneration. There are various limits on in kind payments around the world, including the US. Very generally, in kind payments are only allowed for particular industries and occupations, only allowed up to a certain dollar value, and only allowed as a certain fraction of the employee's wages. Furthermore, the value of the benefit can't exceed the actual cost to the employer - a meal that's priced at $7.25 on the menu is sold at a profit, and would be worth less than the menu price as in kind remuneration.
So, given the scenario described, a restaurant employer could not replace 100% of their employee's wages with food sold for the same amount. It's too high a percentage of the wage paid as in kind payment, and the menu price equivalent of the wage would not have sufficient in kind value.
A more detailed description of in kind payment laws can be found here.
As described, no.
Paying employees with benefits instead of money is called in kind remuneration. There are various limits on in kind payments around the world, including the US. Very generally, in kind payments are only allowed for particular industries and occupations, only allowed up to a certain dollar value, and only allowed as a certain fraction of the employee's wages. Furthermore, the value of the benefit can't exceed the actual cost to the employer - a meal that's priced at $7.25 on the menu is sold at a profit, and would be worth less than the menu price as in kind remuneration.
So, given the scenario described, a restaurant employer could not replace 100% of their employee's wages with food sold for the same amount. It's too high a percentage of the wage paid as in kind payment, and the menu price equivalent of the wage would not have sufficient in kind value.
A more detailed description of in kind payment laws can be found here.
edited 4 hours ago
answered 4 hours ago
Nuclear WangNuclear Wang
1,6518 silver badges9 bronze badges
1,6518 silver badges9 bronze badges
1
The document you've linked is 93 pages and covers laws all over the world. Can you point to where it explains this provision of US federal law in particular? I would like to see a citation of a specific US statute / regulation / case where this is established.
– Nate Eldredge
2 hours ago
1
Handy Reference Guide to the Fair Labor Standards Act "Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA."
– David C. Rankin
2 hours ago
add a comment |
1
The document you've linked is 93 pages and covers laws all over the world. Can you point to where it explains this provision of US federal law in particular? I would like to see a citation of a specific US statute / regulation / case where this is established.
– Nate Eldredge
2 hours ago
1
Handy Reference Guide to the Fair Labor Standards Act "Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA."
– David C. Rankin
2 hours ago
1
1
The document you've linked is 93 pages and covers laws all over the world. Can you point to where it explains this provision of US federal law in particular? I would like to see a citation of a specific US statute / regulation / case where this is established.
– Nate Eldredge
2 hours ago
The document you've linked is 93 pages and covers laws all over the world. Can you point to where it explains this provision of US federal law in particular? I would like to see a citation of a specific US statute / regulation / case where this is established.
– Nate Eldredge
2 hours ago
1
1
Handy Reference Guide to the Fair Labor Standards Act "Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA."
– David C. Rankin
2 hours ago
Handy Reference Guide to the Fair Labor Standards Act "Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA."
– David C. Rankin
2 hours ago
add a comment |
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1
Are you just asking whether the federal minimum wage law allows this? Many states have their own minimum wage laws that may have different requirements (and amounts). By the way, the federal minimum wage is currently $7.25 per hour, not $10.
– Nate Eldredge
9 hours ago
1
@NateEldredge Yes, that is what I am asking. I updated the question to reflect the federal minimum wage.
– Evorlor
9 hours ago
Are you asking if a worker can legally agree to this, or are you asking if an employer can unilaterally impose this on a worker who would prefer cash (e.g. "As of next week, you will be paid in crates of Cream of Chicken soup only, based on a survey of local retail prices. I am legally allowed to do this under the Truth in Minimum Wage and In-Kind Compensation Act of 1973. If you do not like this, you can quit!")?
– Robert Columbia
7 hours ago
@RobertColumbia I am asking if this is legal assuming both parties agree to it.
– Evorlor
5 hours ago
1
This page says yes, but does not give references.
– Nate Eldredge
2 hours ago