It is not illegal for employers to pay employees in cash, reports About.com, although this practice can get business owners in trouble with the government over tax evasion. Employers also risk running afoul of worker's compensation laws. To avoid legal troubles, employers must keep detailed records of all cash payments to workers.Know More
About.com notes that employers are required to pay all payroll taxes when paying cash to workers. This includes Social Security and Medicare. Business owners caught avoiding payroll taxes can be prosecuted if they falsify tax forms. For instance, Knoxvillebiz.com wrote about one business owner who pleaded guilty to misrepresenting wage information on his tax form to avoid payroll taxes. Under-reporting wage income is a crime that carries stiff fines and may include jail time as well.
Employers may also get into legal hot water if a cash-only worker's actions trigger an audit, About.com warns. For example, a problem arises if a worker who is "not on the books" becomes injured on the job and seeks medical attention. When the worker reveals to doctors that the injury is work related, officials are bound to discover the employer's failure to pay into worker's compensation. Similarly, a worker who files for unemployment or disability benefits after working "off the books" is likely to trigger an audit of the employer.Learn more about HR
Employee assistance program (EAP) refers to a service provided by employers that is designed to help their employees deal with the personal or work-related problems. The service provides counseling and assistance with regard to mental health issues, marital problems, substance abuse or financial troubles.Full Answer >
Only a few states have laws requiring short-term disability benefits to be provided to employees by employers, according to Disability Secrets. Those states are New Jersey, New York, Rhode Island, California and Hawaii.Full Answer >
The U.S. Department of Labor requires employers to pay employees for all hours worked, including all hours worked on a final paycheck. Separation of employment is not grounds for an employer withholding final pay.Full Answer >
While it varies from state to state, most states, including Wisconsin, New York and Illinois have laws that prohibit employers from making employees work 7 consecutive days. Some states, such as California, allow employees to work 7 days a week, but require employers to pay double time for at least one of those days.Full Answer >