Which is NOT considered a legal form of wage payment?

Which is NOT considered a legal form of wage payment?

• A. Cash
• B. Checks
• C. Tokens
• D. Direct deposit

Answer: (C)

Tokens are not considered a legal form of wage payment because they lack the characteristics of standard currency or financial instruments recognized for transactional purposes. Legal forms of wage payment must allow employees to easily access and use their wages for legitimate expenses. Cash, checks, and direct deposits meet this criterion since they are widely accepted and can be converted to cash or spent directly. In contrast, tokens may not be universally accepted outside of specific locations or contexts, such as arcade games or vending machines, and do not provide employees with the same level of financial convenience and flexibility. Therefore, wages paid in tokens can create complications for recipients regarding accessibility and liquidity of their earned income.

Tokens are not considered a legal form of wage payment because they lack the characteristics of standard currency or financial instruments recognized for transactional purposes. Legal forms of wage payment must allow employees to easily access and use their wages for legitimate expenses. Cash, checks, and direct deposits meet this criterion since they are widely accepted and can be converted to cash or spent directly. In contrast, tokens may not be universally accepted outside of specific locations or contexts, such as arcade games or vending machines, and do not provide employees with the same level of financial convenience and flexibility. Therefore, wages paid in tokens can create complications for recipients regarding accessibility and liquidity of their earned income.