Genova Burns Partner Jennifer Roselle, Esq. discusses whether or not employees can be paid in crypto as it relates to the Fair Labor Standards Act (FLSA) in a recent ROI-NJ article: "Why NJ is still eager to bring crypto market to state — even after the crash".
Ms. Roselle's section begins, "Despite last week’s crash, many still feel cryptocurrency is the way of the future. It’s just not the way of the present — at least, it isn’t when it comes to paychecks. So said Jennifer Roselle, partner at Genova Burns in Newark and a member of the firm’s Labor Law and Employment Law & Litigation groups."
“(Crypto) is not recognized as the tender and the currency of the United States,” she said. “The Fair Labor Standards Act, which governs, at the national level, how you pay employees, requires, to paraphrase, cash payments. Each state does it slightly differently, but most of them have some sort of nod and recognition toward the idea of legal tender or cash payment.”
"Last week — when many saw their crypto investments drop 50% or more — showed why such a rule is necessary. And why it benefits both employers and employees."
“As an employer, if you have a contract, you’re paying whatever that contract promises,” Roselle said. “You have to pay a certain minimum wage, you have to pay prevailing wage, depending on what industry you’re in. And (with) the volatility of (cryptocurrencies) … you can’t necessarily match those guarantees. And as an employee, do you want your paycheck wrapped up in something that, putting aside all the other issues with it, potentially could be valueless tomorrow? It’s a stretch, sure. But it’s also a very real possibility.”
To access the full article, please click here.