Episode 109: You Can’t Pay People in Chicken

Episode overview

Published August 30, 2022

On this episode of What The Hell Just Happened?!, CEDR CEO Paul Edwards sits down with Compliance Specialist and Digital Communications Coordinator Ally Dagnino to discuss a high-profile case in which an employer tried to pay employees with chicken sandwiches instead of dollars. Paul and Ally break down the compliance considerations associated with paying employees in trade for products or services (including why it is against the law to do so) and explain when employees do and don’t need to be paid for their time. Bottom line: you can’t pay your employees in chicken!

Links and Related Reading

Voiceover: You’re about to listen to another episode of What The Hell Just Happened?! Join Paul Edwards and his guests as they discuss and sometimes even solve some interesting HR problems.

Paul: And… I’m gonna go off the rails sometimes and talk about whatever I want!

Ally: Hey, Paul.

Paul: Hey, Ally. So, normally I say, “Hey, Ally, what’s up? And what’s…what’s…what the hell just happened in HR?” And then, you know, we take off and we start talking about something. But, this time, I already know what the hell happened in HR because it was all over the news, and it is in my home. It happened in my home state of North Carolina. So it caught my attention when it came across the news feed.

Ally: Yeah, I think this was a really popular one.

Paul: It kind of was everywhere, right?

Ally: It was everywhere. Yeah. So today we’re going to talk about the Chick-Fil-A in North Carolina offering up a handful of entrees per shift for volunteers to come in and work at the… at the Drive-Thru.

Paul: I love this story. I think it has intrigue and like, it’s… it’s just… it’s pretty cool. There’s a lot of different angles to this. And I, I just want to say that I think it was the guy was, or I don’t know if it was a male or female manager, but I think the manager was somehow well-intentioned on some… on some level.

I found the article, so I just want to read what they posted… “We are looking for volunteers for our new drive thru express.” The store in Hendersonville wrote this on a Facebook post and their offer to everybody was in quotations, “earn five free entrees per shift and that’s one hour… per one hour worked. Message us four for details”. And then, I’m just going to go ahead and read the second thing that they posted. You called it doubling down. [Laughs]

[Ally laughs]

Paul: “We’ve had multiple people sign up and enjoy doing and have done it multiple times”. The store wrote in a separate post. “People who sign up for this choose it voluntarily”. And I want to focus on that for a minute, okay?

It seems to imply that, if you choose something as an employee voluntarily, if you agree to that, then it’s okay. Because we’ve all seen on television what contracts mean. And, I mean, I was forced to watch soap operas when I was a child and we all know how the law works from that.

[Ally laughs]

Paul: And if you can get someone [laughs] to agree to it, then, you know, that’s what you need.

And I just want to say to anybody who’s listening right out of the gate, employees cannot give up their rights that are given to them by public policy, by regulation, or any… or any… in any other manner. So an employee can’t agree to a lower minimum wage. An employee cannot agree to work more than 40 hours and not get paid for overtime. An employee can’t agree to work under unsafe working conditions that, you know, underneath the OSHA rules. An employee cannot agree, an employee cannot agree, they cannot agree away their rights.

Ally: So, I just want to add something there because this is something we see all the time. And I think that sometimes people don’t realize that, as you mentioned, with the contracts: by “They can’t agree,” you don’t mean like, “Oh,” you know, “they can’t verbally agree and that doesn’t count.” Like, it does not matter if you have a contract drafted by a lawyer that says that this employee is waiving those rights. All that means is that you’ve got a bad lawyer. [Laughs]

Paul: Yeah. No lawyer would, no lawyer who knew anything about anything would draft this kind of thing. And, unfortunately, when you do draft something like that – and it’s usually someone, again, doing it themselves as a manager or an owner – if they do that, they are actually creating evidence and they’ve signed it. And now it’s in the record to show whatever governing body there is that would come in and investigate this or in a lawsuit. It’s just, it’s a gift. It’s a gift to the other side.

Let’s get back to this thing. Okay. So, look, people can’t be paid in chicken. How about that? You can’t pay people in chicken no matter how delicious those chickens may be. Don’t get me wrong, I love me a Chick-Fil-A sandwich. Although I do want to say that Bojangles spicy chicken biscuit is way, way better. I mean, I’m from the South, and we’re talking about North Carolina, and there’s a place they’re called Bojangles. Okay.

Ally: You heard it here first. [laughs].

Paul: Yeah. I wish they would come here, but they probably won’t.

[Ally laughs]

Paul: But Bojangles, if you’re listening…[laughs]. Okay, the thing that governs this is the Federal Labor Standards Act and it says right in Section One that you can’t pay people in chicken.

Ally: Verbatim. [Laughs]

Paul: Verbatim. It says right there.

So, I’m hungry.

Ally: Yeah, that was a lot of chicken talk.

Paul: A lot of chicken talk.

Ally: I’m vegetarian so I won’t be eating chicken, but I am definitely hungry. [Laughs]

Paul: Oh no!

[Ally laughs]

Ally: Thanks, Paul. That was a lot of really good information about a very interesting article. I think this one got a lot of traction, so it’s cool to hear some feedback from an HR perspective.

Paul: Yeah, yeah. I’m headed to the drive thru.

Ally: See you there.

Paul: Bye!

Voiceover: Thanks for joining us for this week’s episode of What The Hell Just Happened?! Do Paul a favor: share this with your network.

If you have an HR issue or a question you’d like us to discuss on this show, send it to podcast@WTHjusthappened.com.

For more HR advice and insights from Paul and his team of experts, you can also join the private Facebook group, HR Base Camp or visit HRbasecamp.com.

Make sure you tune in next week. And remember: better workplaces make better lives.

Email questions or comments for Paul at podcast@wthjusthappened.com

Contact Us

Friendly Disclaimer: This information is general in nature and is not intended to provide legal advice or replace individual guidance about a specific issue with an attorney or HR expert. The information on this page is general human resources guidance based on applicable local, state, and/or federal U.S. employment law that is believed to be current as of the date of publication. Note that CEDR is not a law firm, and as the law is always changing, you should consult with a qualified attorney or HR expert who is familiar with all of the facts of your situation before making a decision about any human resources or employment law matter.

Related reading from the HR basecamp blog

A Blog Written by CEDR, written by HR Experts to help you run your practice.

View all posts

I-9 Readiness for 2025: How to Prepare Your Business For a Visit From ICE

Feb. 5, 2025

Employers have always needed to be vigilant about complying with immigration laws, most especially with federal I-9 forms and E-Verify...

Excessive Unpaid Time Off, Bathroom Breaks, and Cell Phone Use

Jul. 1, 2024

You can generally require that an employee use their paid vacation time toward any time off they take.

Independent Contractors, Point-Based Attendance, and Harassment

May. 12, 2024

The Department of Labor’s latest independent contractor ruling makes it much harder for employers to classify workers as independent contractors.