Boss May Not Compel Gifts From Workers

Q: I am a state employee. For the last five years our supervisors have been encouraged to donate about $5 each for a cash gift to their boss, who says she prefers cash because she is very selective about her gifts.

With about 20 supervisors (many supervisors give much more than the encouraged $5), this cash gift is substantial.

Even though they fear repercussions, my supervisor and another decided not to “donate” cash this year. I told them that repercussions not only are illegal, but that it is inappropriate for a supervisor to request cash gifts from subordinates.

These supervisors would like confirmation of my advice.

--M.H., San Bernardino

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A: You are correct. Your employer may not compel or coerce any employee or job applicant to purchase something of value for the employer or any other person.

Based on the details that you have provided, your situation would fall within California Labor Code Section 450. A violation is a misdemeanor.

Although there are no remedies explicitly stated in the statute, and no reported cases have indicated whether any civil remedies exist for a violation of this law, an employee who refused to donate to the supervisor and was subsequently terminated as a consequence could bring a wrongful termination claim. The employee would have to establish that the termination violated a public policy of the state--in this case the policy described in Labor Code Section 450.

If the claim is successful, the employee would be entitled to compensatory and potentially punitive damages.

--Diane J. Crumpacker

Management law attorney

Fried, Bird & Crumpacker