Employers may consider advancing
money to employees facing serious financial hardship or as financial
incentives. However, employers must carefully consider the complications
the lender/borrower relationship will add to the employer/employee
relationship. Employers that regularly make loans or advances to employees
may be subject to the disclosure requirements of consumer credit laws.
If an employee is required to repay a loan through payroll deductions,
employers must comply with state laws related to such deductions.
Summary for [Your State]