Is a company allowed to reward employees who donate to a company-sponsored charity?
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Is a company allowed to reward employees who donate to a company-sponsored charity?
The reward was not known when the funds were solicited. CEO sent email asking employees to donate to company-sponsored charity. Said if 100% participation every receives a catered luncheon. After time period expired, only 65% participated. CEO gave each of those people a vacation day, plus cash for lunch because they gave to the charity. Other people got nothing obviously. This seems unethical, if not illegal in some way.
Asked on March 5, 2012 under Employment Labor Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Is it unethical? Possibly.
Is it illegal? Most likely not; companies are free to set incentive and reward plans, to give both directly and indirectly to charities, to subsidize or encourage employees to give their time and/or money to charity, etc. As a general matter, therefore, this would be legal.
There are undoubtedly certain cases where it might not be legal--for example, if the "charity" was some political group, this could run afoul of campaign finance, etc. laws. Government workers can't be forced to contribute, I believe. However, for a private sector employer and a true charitable organnization, this should be legal.
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