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by tremdog 1622 days ago
I know it’s bad, but I really can’t see why this is illegal - especially since they included additional funding to cover the employee’s expenses of processing the money.

If paying in pennies is illegal, then we should simply abolish the penny because it’s not with the time or effort.

The Coinage Act of 1965, specifically Section 31 U.S.C. 5103, states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts."

Now, private businesses can refuse to take cash before they render a service. But my understanding is that US tender must be accepted for all debts.

3 comments

The pennies were in payment of his final paycheck. The suit is in regard to unrelated wage theft from unpaid overtime and discrimination/retaliation (presumably for reporting the wage theft), as well as failure to maintain required records.
They're not being sued fir the pennies thing. They're being sued for other issues.
It's actually legal to refuse payment of even smallish debts with coins in Australia.

Some rationale I can think of probably that's unnecessarily burdensome on the person being paid to convert it into useful denominations.

There is also the very real possibility that the person receiving the pennies, that could weigh any amount, has no ability to transport the payment.