A former employee at a startup told MarketWatch, that the employer demanded he return the cryptocurrency salary after the price of the digital asset rose severalfold.
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According to him, he was involved in developing the business of the tech startup on a contract basis. When the agreement was signed in spring 2020, the company\’s chief executive stated that he would be paid in cryptocurrency.
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The clause allowing payment in dollars was crossed out of the contract by the employee, who chose to take the risk in the hope of the digital asset\’s appreciation.
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In August 2020 he received payment for contract work in cryptocurrency. The coin\’s price has since risen by 700%, and in early May the former employee received a letter from the company\’s chief executive.
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“Since you have not brought any revenue to the company and you are not currently performing any additional work, please return all cryptocurrency received in August 2020. You can bill for time worked in dollars,” the message said.
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The worker explained that under the contract his job was to drive sales for the startup\’s solution. The agreement included a commission component as well as hourly pay for the work performed, including calls, email outreach, arranging meetings, participating in presentations, and more.
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“I\’m not sure what to do. I\’ve worked with this person for many years, and he tends to try to change the payment terms after agreeing on the form of collaboration,” the man added.
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In The Moneyist column he sought advice from MarketWatch\’s financial editor Quentin Fortrell on whether to return the cryptocurrency.
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“No. Absolutely not. If the value of the cryptocurrency since August 2020 had fallen to zero, would he have wanted to pay you in dollars? Would he have contacted his employees in that case?” Fortrell replied.
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His view was confirmed by labor-law attorney Eugene Li, who noted that neither the employer nor the employee can breach the terms of a contract without consequences.
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Another hurdle to returning the cryptocurrency is tax law. The company was obliged to treat the crypto payout in dollars at the exchange rate, and the worker— to report the corresponding income in fiat.
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As a reminder, Kansas City Chiefs\’ Sean Kalkin was the first in the NFL to decide to receive his 2021 salary of $920,000 in bitcoin.
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