CoinClinic: Speculation, Wages, and Minting Technology
This month’s CoinClinic explores the line between collecting and speculation, the legality of company store money, wage payments in cryptocurrency, and the presses striking today’s U.S. coins.
A television coin sales program made me think: is there a difference between a coin being collectible and one purchased because of speculation?
Every collector would like to think he made a good purchase and that that purchase might increase in value. Television programs make it appear there are collectors who will pay more almost immediately because you got a lock on something they insinuate is going to be rare. They are not catering to collectors, but to speculators.
You recently cited laws forbidding making change in anything other than U.S. coins illegal below the value of a dollar. Can you explain how company store currency wasn’t illegal?
The Fair Labor Standards Act regulates wages paid to employees. At the state level, as far as I know, all states have laws requiring wages to be paid in U.S. currency, by a written instrument that is negotiable on demand at full face value in U.S. currency, or via electronic funds transferred to an employee bank account or through a payroll card account. Prior to the FLSA, employers could use company store money as a substitute for U.S. currency. The only exception of which I am aware today is a farmer, by agreement with an employee, offering crops as a substitute for U.S. currency.
Can an employer pay employees in Bitcoin or other virtual currency?
As of now, the answer is “no.” An attorney offered the advice that there is no express statement in the Fair Labor Standards Act that exempt employees must be paid in cash or its equivalent, but payments in dollars are clearly contemplated. All non-exempt employees must be paid as I just explained.
Can foreign workers who are in this country be paid in the currency of their own country rather than in U.S. currency?
It is my understanding that if there is a reasonable basis to pay in a foreign currency due to the employee temporarily residing in the United States, that employee can be paid in the currency of his or her own country; however, the current exchange rate must be applied to ensure the employee is paid at least the minimum wage that is legally due.
Who makes the coining presses currently used at the U.S. Mint?
There are likely several companies involved, but recently released photos of the striking of the 2025 Omega Lincoln cents clearly show a Grabener press. Grabener is part of the Andritz Group in the Siegerland region of Germany. Grabener makes coining presses for both circulation strike and specialized collector coins and medals.
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