Are employers allowed to offer employee discounts?

Yes, employers in California are allowed to offer employee discounts. In fact, California Employment Benefits Law encourages employers to do so. Employers may offer discounts on goods or services they provide, or they may partner with retailers to offer discounts to employees. For example, a business may offer employees a discounted rate on its products or services, or a retail store may offer a discount to workers at another store. Employer discounts are regulated by the California Labor Code Section 2810. Employees must be informed of their discount rights so they can take advantage of them. Employees may only receive discounts for which they are eligible and for which the employer has provided written notice to that effect. Employers must also provide an explanation of the discount and how it will be applied. Employee discounts can be an effective way to increase employee morale and provide an incentive for employees to remain loyal to the company. Employers should be sure to keep up to date on California Employment Benefits law to ensure they are compliant. The law is subject to change, and employers should stay informed to make sure they are offering legally compliant discounts.

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