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by albi_lander
2777 days ago
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This law is only true for companies that poorly understand the value of perks.
I work in startup where one of the main perk is that we have free lunch. This has been the case since I joined the startup, back then there were 10 people. We are now 75. Every time I tell my friends that my lunches are paid by the company, I get the same reaction which essentially is: "Man, that's so cool!"
Well, you don't know what my salary is. What if I have free lunches, but I'm paid 20% less than the industry average ? The lesson I've learned through this, is that from the company POV, money spent in perks is worth more than money spent in salary, i.e. employees implicitly would rather have 300$ of free lunches paid by the company every month than +300$ on their salary. It is in the interest of the company to provide good perks, as the overall perceived employee benefits will be higher than the equivalent in 100% salary. |
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I agree that companies sometimes spend money on questionable so-called "benefits" (e.g. company-paid bowling party or motivational speakers) -- that employees would rather have as extra cash in their pocket.
That said, I think company-paid lunch is an advantageous financial deal for employees since it's not taxed as income[0][1] and employees have to eat anyway.
I also hate having to get into a 150-degree hot car in the summer or fight freezing snow in the winter just to go buy a lunch. The alternative of bringing my own brown-bag lunch also has hassles because of the extra prep & planning at home. Sure, an on-site catered lunch benefits the employer -- but it also benefits the employees. It's a win-win.
[0] https://www.bizjournals.com/sanjose/news/2015/08/14/exclusiv...
[1] daily free meals may be a gray-area tax loophole (it's not "occasional") but IRS isn't enforcing a strict interpretation of the law: https://www.irs.gov/government-entities/federal-state-local-...