CrescentDragonwagon
11-06-2008, 09:46 AM
Our company has been hit with the financial downturn and have to lay off about 20% of our workers.
I have 2 workers who have offered to either volunteer for no pay or donate their paychecks back to the company.
I really could use their labor. What would be the best approach?
Do not do it. This is simply not legal. It is not possible for the employees to legally waive FLSA protection.
This is very "black letter law".
- For private employers can never on any circumstances accept unpaid labor.
- Non-private employers are severely restricted on the circumstances that volunteer labor can be accepted. The restrictions would specifically exclude what you are talking about.
- Not surprisingly, the government has largely excepted governmental employers from these restrictions.
You can legally pay minimum wage and overtime if applicable on a go forward basis.
CrescentDragonwagon
11-06-2008, 10:07 AM
Can companies accept donations in any form?
Pattymd
11-06-2008, 10:30 AM
I guess so. But give them their pay as normal and let them cash their checks. You don't want any hint of being accused of requiring kickbacks. The perception could still be there though.
CrescentDragonwagon
11-06-2008, 10:33 AM
We could always create something that they could buy. A fundraiser product for the company. :-) Actually, some of our customers might 'buy' these too to help us out.
Pattymd
11-06-2008, 11:39 AM
I'm back with DAW. This scares me. How about just cutting their wages/salaries? That's what a lot of employers are doing in this economy.
CrescentDragonwagon
11-06-2008, 11:46 AM
Yes, we don't want to 'cross the line'.
Thanks for the advice.
Does anyone know a good forum where I could find help with finanial planning?
Pattymd
11-06-2008, 12:10 PM
Does anyone know a good forum where I could find help with finanial planning?
http://www.score.org/index.html