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ARTICLE · 12 DECEMBER 2017

Legal Ramifications Of Paying Employees With Cryptocurrency

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As cryptocurrencies surge in value and enter mainstream consciousness, an increasing number of employers may consider compensating their employees with bitcoin, ether, or other cryptocurrencies.

United StatesTechnology
Allan Bloom
Allan Bloom
Brett Schwab
Brett Schwab
Author LinkedIn connections

As cryptocurrencies surge in value and enter mainstream consciousness, an increasing number of employers may consider compensating their employees with bitcoin, ether, or other cryptocurrencies. While a cryptocurrency compensation scheme may proliferate everyday usage of these currencies and attract tech-savvy labor talent to organizations, it may also put an employer at risk of wage and hour violations, and implicate additional regulatory regimes such as the securities laws. Although lawsuits on such "crypto-compensation" issues have yet to materialize, employers should stay ahead of the curve by protecting themselves against these potential pitfalls:

1) Failing to Pay Employees with Cash or U.S. Currency

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