this post was submitted on 09 May 2025
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Unfortunately, company scrip is legal as long as they’re still paying at least minimum wage in USD. Like they can pay you $7.25 per hour (federal minimum wage, assuming your state doesn’t have a higher minimum wage) plus $92.25 per hour in company scrip. And they could claim that your wage is $100 per hour, because of the company scrip. It’s scummy, but technically legal.
Because at the time, minimum wage was actually intended to cover the cost of living (housing, utilities, food, and a single car) for a family of three. So as long as they were at least paying the minimum wage to cover your basic essentials, the scrip was legal. Nowadays, minimum wage has deflated to the point that it doesn’t even support one person. So the spirit of the FLSA’s company scrip section hasn’t been honored, as minimum wage has deflated.