Paying employees “under the table” is illegal and unethical. It puts the employer at risk of severe legal and financial consequences.
One of the most common reasons why an employee may want to be paid under the table is to avoid wage garnishment, such as child support or other court-ordered payments. However, while this may seem like a convenient solution in the short term, it can have serious long-term consequences for both the employer and the employee.
Firstly, paying an employee under the table violates Oregon’s construction laws and can result in severe legal penalties. Employers who are caught engaging in this practice may be subject to fines, penalties, and even criminal charges. Additionally, paying employees under the table can damage the employer’s reputation and lead to a loss of business and customers.
Secondly, employees who are paid under the table are not entitled to important legal protections and benefits. They may not have access to workers’ compensation insurance, unemployment benefits, or other forms of financial assistance in case of injury, illness, or job loss. This can leave them vulnerable to financial hardship and insecurity.
Finally, paying employees under the table is simply not ethical. Employers have a responsibility to treat their workers with respect and fairness, and paying them under the table is a betrayal of this responsibility. It also undermines the integrity of the construction industry and erodes public trust in businesses.
Here are the top five reasons why employers should not pay their employees under the table:
- Legal consequences: Employers who pay their employees under the table may face severe legal consequences, including fines, penalties, and even imprisonment. The government takes tax evasion very seriously, and employers who do not pay their employees legally will be punished accordingly.
- Employee benefits: Paying employees legally ensures that they are entitled to all the benefits they deserve, such as health insurance, sick leave, and vacation pay. By paying them under the table, employers deprive their employees of these benefits, which can lead to dissatisfaction and high turnover rates.
- Trust and respect: Paying employees under the table can damage the trust and respect that employers have with their employees. It sends the message that the employer does not value their employees and is willing to break the law to save money.
- Reputational damage: Word can spread quickly if an employer is caught paying employees under the table, which can result in significant damage to the employer’s reputation. This can negatively impact the employer’s ability to attract new employees, customers, and investors.
- Ethical considerations: Paying employees under the table is unethical and goes against the values of fairness, honesty, and integrity. Employers who engage in this practice are not only breaking the law, but they are also betraying the trust of their employees, customers, and the community as a whole.