Employee Asking for money

[Lasombra52]

What's everyone's take on this?
I make sure that all the individuals that work for me, either directly, or subcontracting, get paid above Minimum wage. I actually pay above anyone else around here for inexperienced drafters. (CAD if you know that word).

So with that said, how would you feel if an employee asks for more money? Maybe they got into a bind or something, oh, and I'm not talking about more money hourly. I give $1.00 an hour every six months to each employee. I mean, "hey can I borrow $1,500, I'll pay you back?" or something along those lines.

They always pay it back, just wondering if I shouldn't do this. It is never through the company, it is always my cash, not the company's.

What are your thoughts?

[blackbull]

What's everyone's take on this?
I make sure that all the individuals that work for me, either directly, or subcontracting, get paid above Minimum wage. I actually pay above anyone else around here for inexperienced drafters. (CAD if you know that word).

So with that said, how would you feel if an employee asks for more money? Maybe they got into a bind or something, oh, and I'm not talking about more money hourly. I give $1.00 an hour every six months to each employee. I mean, "hey can I borrow $1,500, I'll pay you back?" or something along those lines.

They always pay it back, just wondering if I shouldn't do this. It is never through the company, it is always my cash, not the company's.

What are your thoughts?


Under NO circumstance should you loan money to an employee in the manner described. You are putting yourself in serious danger. Example....if the employee used that money in connection with any fraudulant activity YOU COULD BE IMPLICATED. Personal relationships aside it is never a good idea to blur the lines between employer & employee. I had the exact same thing happen to a friend.

[Lasombra52]

Under NO circumstance should you loan money to an employee in the manner described. You are putting yourself in serious danger. Example....if the employee used that money in connection with any fraudulant activity YOU COULD BE IMPLICATED. Personal relationships aside it is never a good idea to blur the lines between employer & employee. I had the exact same thing happen to a friend.

Thanks, that's kinda what I was thinking. I knew it wasn't a good idea, and the individual I was referring to needed help to fix his car, but I was frightened the whole time that I was fronting him money for something that I didn't know about. Thanks for the back-up.

[pdisme]

Could get especially messy if you ever have to terminate their employment for whatever reason. Florida is an at-will state so you can terminate for any reason outside of age/sex/etc. discrimination, but if you've loaned money that could cause issues.

[chaimo]

My dad does this. Sometimes his employees need an extra 700-800 bucks for rent or what not, and many of them have worked for my dad for 2-3 decades, my dad lends them money all the time and usually docks it from there pay with no interest.

[12097]

While I understand the reluctance to lend money, sometimes a small advance can make a difference to both the employer and employee.

In a tight labour market, where your employee can "walk across the street" to get another job, it is sometimes the little things that can keep them with your company.

Remember, it is less expensive to extend a small advance than to pay to train a replacement.

[Shawn]

I've given my employees money from their checks early sometimes, and just deduct it on their next check and don't charge them for it. But I would not loan more than their check(s) would be, and usually only once in a while.