skip navigational linksDOL Seal - Link to DOL Home Page
Photos representing the workforce - Digital ImageryŠ copyright 2001 PhotoDisc, Inc.
www.dol.gov

Previous Section

Content Last Revised: 9/28/67
---DISCLAIMER---

Next Section

CFR  

Code of Federal Regulations Pertaining to U.S. Department of Labor

Title 29  

Labor

 

Chapter V  

Wage and Hour Division, Department of Labor

 

 

Part 531  

Wage Payments Under the Fair Labor Standards Act of 1938

 

 

 

Subpart C  

Interpretations


29 CFR 531.34 - Payment in scrip or similar medium not authorized.

  • Section Number: 531.34
  • Section Name: Payment in scrip or similar medium not authorized.

    Scrip, tokens, credit cards, ``dope checks,'' coupons, and similar 
devices
are not proper mediums of payment under the Act. They are neither cash 
nor ``other facilities'' within the meaning of section 3(m). However, 
the use of such devices for the purpose of conveniently and accurately 
measuring wages earned or facilities furnished during a single pay 
period is not prohibited. Piecework earnings, for example, may be 
calculated by issuing tokens (representing a fixed amount of work 
performed) to the employee, which are redeemed at the end of the pay 
period for cash. The tokens do not discharge the obligation of the 
employer to pay wages, but they may enable him to determine the amount 
of cash which is due to the employee. Similarly, board, lodging, or 
other facilities may be furnished during the pay period in exchange for 
scrip or coupons issued prior to the end of the pay period. The 
reasonable cost of furnishing such facilities may be included as part of 
the wage, since payment is being made not in scrip but in facilities 
furnished under the requirements of section 3(m). But the employer may 
not credit himself with ``unused scrip'' or ``coupons outstanding'' on 
the pay day in determining whether he has met the requirements of the 
Act because such scrip or coupons have not been redeemed for cash or 
facilities within the pay period. Similarly, the employee cannot be 
charged with the loss or destruction of scrip or tokens.
Previous Section

Next Section



Phone Numbers