It usually depends on the state. Be sure there is a signed agreement before the CC is even handed over to the worker. Where state law is silent and there is no court case governing this activity, it is often deemed that the worker has taken this benefit and deducting from final pay – with written consent – is fine. In some cases it’s even OK to reduce them below minimum – but not in every state. If no written consent is on file, then the money can be added to wages or a 1099 can be issued.
April 2018
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