Camp should pay for job T-shirts

DEAR CARRIE: The summer camp where my daughter works required her to buy three T-shirts at $8 each, and she had to purchase them all at once. But she earns below minimum wage; so the purchase was costly. Shouldn't the camp pay for the shirts since they carry its logo? -- Dad's Query

DEAR DAD: I asked the state Labor Department, and it sided with you. Here is the department's answer:

"Since the camp is requiring the T-shirts to be worn and the garment bears its logo, we would consider this purchase requirement as equivalent to an illegal deduction from wages and a violation of state labor law. The fact that the purchase is made by a separate transaction instead of a direct deduction from a paycheck does not matter."

New York State regulations say that the cost of buying or maintaining a uniform must not take an employee's wages below minimum wage, which is currently $7.25 an hour for both New York State and the nation. Your daughter was already earning below minimum wage because she works for a summer camp. So the employer illegally required your daughter to pay for the shirts, according to the department.

I would suggest she send the camp director a copy of this column anonymously. She actually would be doing the camp a favor by calling its attention to a blatant labor law violation.

For more on state law and uniforms click here to link to New York State Labor Department information. 

DEAR CARRIE: My granddaughter is a college student who works off the books at a small retail store. She likes the arrangement because she doesn't pay taxes and earns more as a result. I think it's foolish because it's illegal. And she's not paying into Social Security. I also believe she won't be eligible for unemployment benefits if she is laid off or for workers' comp if she is injured on the job. Am I right? -- Grandma Knows Best?

DEAR GRANDMA: Your instincts are right. "Paying employees off the books has implications for both employees and employers," said employment attorney Regina Faul, a partner at Rivkin Radler in Uniondale.

An employer who pays off the books isn't paying workers' compensation, disability, unemployment insurance and payroll-tax amounts for that employee. And the company isn't withholding taxes the employee owes.

"Each of these is violative of different legal requirements," Faul said.

The upshot: Your granddaughter faces many risks from the arrangement, as you suspected. For example, if she is laid off, she might not be able to collect unemployment benefits.

"Since the employer has not reported her as earning wages, the state unemployment division would have no record of her, and she would have no record of payment of wages," Faul said. "Therefore, the employer can deny that she was an employee, and she could not refute that."

And that is for starters. She most likely will not qualify for workers' comp benefits, even if she is injured at work, also as you suspected.

"The employer has not paid for workers' compensation insurance, and the carrier will most likely not cover the claim," Faul said.

And lastly, your granddaughter is flat-out breaking the law.

"The employee is not paying Social Security and / or federal or state withholdings [taxes] or paying taxes on wages received, which are violations of the law," Faul said.

The bottom line: "Off-the-books payments are not advisable for employers or employees," Faul said.

For more on criteria for unemployment benefits click here go to New York State Labor Department information.