Can my employer pay me this way?

UPDATED: Oct 1, 2022

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Can my employer pay me this way?

At my place of employment we have accounts. We
can receive services and purchase products and use
our account to pay for it. We can put money on our
accounts or pay off a balance. The account needs to
be paid off each month, if we dont pay it out of
pocket, the money is taken out of our paychecks.

Recently, my employer has been paying us for some
of our time on our accounts. If we attend any
meetings, continued education, or any time spent
beyond our scheduled hours. All of that pays onto
our accounts. Several employees, including myself,
have other duties at work. Those jobs are paid out
mostly to the account.

Is my employer allowed to use this as a legitimate
form of payment?

Asked on October 29, 2018 under Employment Labor Law, Minnesota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

With employee consent  or agreement, you could be paid this way. Without consent, you have to be paid in a way that the funds you get are "legal tender" or can be used anywhere, for any purpose, not just for company services. As a practical matter if you get most of your funds as cash or check or direct deposit to a bank account, and the amount deposit to the employer account is equal to less than you spend (so that you are not accumulating limited-use funds in the account) it is unlikely to be worth taking legal action. Only if the employer starts paying you more than you need into the accounts would it likely be worthwhile contacting the department of labor about this.

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.

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