Can management tell employees not to: accept cash from a customer then pay with their personal credit card because store doesn&#39;t take cash?
<p>This question arises from the answers given in <a href="https://law.stackexchange.com/questions/64988/is-it-illegal-for-a-store-employee-to-do-this-with-payment">Is it illegal for a store employee to do this with payment?</a> and <a href="https://law.stackexchange.com/questions/65014/what-power-does-an-employer-have-over-gratuities-tips">What power does an employer have over gratuities/tips?</a></p>
<p>To recap, a retail store does not accept payments in cash. They only accept payments by debit or credit cards. If a customer only has cash with them, so store employees accept the cash and pay with their personal credit card. No change (if there was any) is returned, and the employee keeps it as a tip in a sense.</p>
<p>As an example a customer buys something that is $19.50 but only has cash. The customer agrees to not receiving the change, the employee takes the $20 and pays the $19.50 on his credit card. Also the store does allow for tips, that clearly is policy.</p>
<p>My question is, can management or a coworker demand that a staff member not do this? Can an employee be reprehended or fired for taking cash and then paying with his personal credit card? Would it make a difference if it was exact change?</p>
<p>The customer could turn to the next person in line, gives them the cash and gets them to pay on their card. Since this would be allowed, could the employee argue they are not acting on behalf of the company and just wanted to do a person a favour?</p>

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<p>Can management tell employees not to: accept cash from a customer then pay with their personal credit card because store doesn't take cash?</p>
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<p>Yes. This has to do with the employer's freedom of contract I mentioned in a <a href="https://law.stackexchange.com/a/65039/18505">previous answer</a>. The employer's rule &quot;<em>I enter these sale contracts only with people who pay with credit card <strong>and</strong> who are not my employees</em>&quot; is totally lawful.</p>
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<p>Can an employee be reprehended or fired for taking cash and then paying with his personal credit card?</p>
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<p>Yes. The employee is in violation of employer's lawful policies of which the employee was aware. It is irrelevant whether the employee made any profit in that violation.</p>
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<p>The customer could turn to the next person in line, gives them the cash and gets them to pay on their card. Since this would be allowed, could the employee argue they are not acting on behalf of the company and just wanted to do a person a favour?</p>
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<p>No. The aforementioned rule is not binding on the next person in line, but it certainly is binding on the employee. Accordingly, the next person in line is free to do others that favor whereas the employee is not.</p>

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