Can a store owner require employees to take overtime pay in store credit?

My friend works in a convenience store and the owner requires that all employees take overtime pay in store credit which can only be redeemed in the store. Is this legal? What should he do?

Asked on November 12, 2012 under Employment Labor Law, New Jersey


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

He should contact the New Jersey Department of Labor and file a complaint that he is being denied over time pay and the Department of Labor should investigate the claim.  There is no written contract as to this situation correct?  Not to say that it would bar him from filing a complaint.  It is just good to give as much information to the DOL as possible.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.