1 00:00:03,200 --> 00:00:07,960 Speaker 1: This is Bloomberg Law with June Brussel from Bloomberg Radio. 2 00:00:09,680 --> 00:00:13,360 Speaker 1: Try these fabulous new fruit flavors from Ultra Slim's ass, 3 00:00:13,560 --> 00:00:18,880 Speaker 1: but we will dread out fading sup short starts. Thank 4 00:00:18,920 --> 00:00:23,480 Speaker 1: you l A last I have reread every day. That's 5 00:00:23,600 --> 00:00:27,120 Speaker 1: the genius of this program. I lost twenty six pounds 6 00:00:27,400 --> 00:00:32,640 Speaker 1: and I have eaten bread every single day. We've all 7 00:00:32,680 --> 00:00:36,360 Speaker 1: seen the many commercials aimed at the millions of Americans 8 00:00:36,560 --> 00:00:39,839 Speaker 1: trying to lose weight. With good reason. People who are 9 00:00:39,920 --> 00:00:43,400 Speaker 1: fat faced bias in every corner of their lives. In 10 00:00:43,520 --> 00:00:48,280 Speaker 1: one survey, respondents rated people who looked overweight as lazier, 11 00:00:48,640 --> 00:00:52,519 Speaker 1: weaker willed, and less likely to win on Jeopardy. And 12 00:00:52,600 --> 00:00:56,120 Speaker 1: being overweight can even cost you your job Joining me 13 00:00:56,200 --> 00:01:00,440 Speaker 1: is Bloomberg Business Week reporter josh Idolson. Josh found that 14 00:01:00,480 --> 00:01:04,160 Speaker 1: people who are overweight are hired less, promoted less, and 15 00:01:04,240 --> 00:01:09,720 Speaker 1: paid less. One study suggests that gaining one point of 16 00:01:09,800 --> 00:01:13,080 Speaker 1: body mass index, which is just six pounds for an 17 00:01:13,120 --> 00:01:17,200 Speaker 1: average American woman, causes a woman's hourly pay to drop 18 00:01:17,280 --> 00:01:23,160 Speaker 1: by two. This exemplifies how systemic weight discrimination is in 19 00:01:23,680 --> 00:01:28,039 Speaker 1: US society and in the US workplace, where having more 20 00:01:28,120 --> 00:01:32,440 Speaker 1: weight can mean not being hired, not being promoted, not 21 00:01:32,600 --> 00:01:36,759 Speaker 1: being retained, or being fired, as well as being paid 22 00:01:36,880 --> 00:01:40,760 Speaker 1: less money and being put in less desirable positions, and 23 00:01:40,840 --> 00:01:45,280 Speaker 1: companies get away with this treatment of overweight employees. Something 24 00:01:45,319 --> 00:01:49,080 Speaker 1: many people don't realize is that discrimination based on weight 25 00:01:49,480 --> 00:01:52,960 Speaker 1: is legal in almost all of the country. There's only 26 00:01:53,080 --> 00:01:58,800 Speaker 1: one US state, Michigan, which has banned discrimination based on weight. 27 00:01:59,000 --> 00:02:01,360 Speaker 1: There are a hands full of cities that have done it. 28 00:02:01,640 --> 00:02:07,560 Speaker 1: Federal law covers categories like religion and race and veteran status, 29 00:02:07,600 --> 00:02:12,400 Speaker 1: but not explicitly your weight. There are cases where people 30 00:02:12,400 --> 00:02:17,080 Speaker 1: with obesity have challenged alleged discrimination based on their weight 31 00:02:17,280 --> 00:02:21,480 Speaker 1: under the Americans with Disabilities Act. That ad A prohibits 32 00:02:21,480 --> 00:02:26,959 Speaker 1: discrimination based on physical impairments that interfere with major life activities, 33 00:02:27,040 --> 00:02:31,640 Speaker 1: but courts in general have been pretty hesitant about finding 34 00:02:31,760 --> 00:02:35,359 Speaker 1: weight to be something that is covered as a disability 35 00:02:35,520 --> 00:02:38,840 Speaker 1: under the ADA, even in cases where we're talking about 36 00:02:39,160 --> 00:02:44,080 Speaker 1: more serious obesity. Federal judges have written that considering obesity 37 00:02:44,080 --> 00:02:47,200 Speaker 1: to be a disability could create a slippery slope that 38 00:02:47,200 --> 00:02:51,120 Speaker 1: would even include protecting grossly short people. That's one of 39 00:02:51,280 --> 00:02:55,720 Speaker 1: several cases in which federal judges have bulked at the 40 00:02:55,800 --> 00:03:01,000 Speaker 1: idea that someone's obesity inherently is a protect the disability, 41 00:03:01,160 --> 00:03:05,560 Speaker 1: and so judges have asked questions about whether there's a 42 00:03:05,760 --> 00:03:10,240 Speaker 1: physiological cause to the person's obesity or not. As one 43 00:03:10,480 --> 00:03:13,440 Speaker 1: law professor put it to me, these cases can seem 44 00:03:13,760 --> 00:03:17,360 Speaker 1: pretty judge e on the judge's part, and one of 45 00:03:17,440 --> 00:03:21,320 Speaker 1: the authors of the Americans with Disabilities Act argued to 46 00:03:21,400 --> 00:03:24,800 Speaker 1: me that these distinctions are not really in the text 47 00:03:24,960 --> 00:03:28,160 Speaker 1: of the law, that the law itself does not ask 48 00:03:28,400 --> 00:03:32,120 Speaker 1: what's the origin of someone's disability? Is it in their 49 00:03:32,200 --> 00:03:34,680 Speaker 1: genes or is it in a choice that they made. 50 00:03:34,760 --> 00:03:37,960 Speaker 1: But there has been a sense in many of the 51 00:03:38,000 --> 00:03:41,680 Speaker 1: cases from the judges that it just can't be that 52 00:03:41,880 --> 00:03:46,880 Speaker 1: obesity itself automatically is legally protected. Some judges have been 53 00:03:46,880 --> 00:03:50,920 Speaker 1: concerned with this concept called immutability, that is, whether the 54 00:03:50,960 --> 00:03:55,520 Speaker 1: trait that's subject to discrimination is one a person can't change. 55 00:03:56,000 --> 00:03:59,160 Speaker 1: This is a tricky issue, in part because a lot 56 00:03:59,200 --> 00:04:03,200 Speaker 1: of Americans think of weight as not out of someone's control, 57 00:04:03,360 --> 00:04:06,960 Speaker 1: as something that is a consequence of people's choices, a 58 00:04:07,040 --> 00:04:11,080 Speaker 1: consequence of their willpower. But the mutability of weight really 59 00:04:11,160 --> 00:04:14,480 Speaker 1: is overstated. If you look at the science on this, 60 00:04:14,880 --> 00:04:19,320 Speaker 1: and in fact, the weight of a mutability is overstated too. 61 00:04:19,600 --> 00:04:23,480 Speaker 1: Many of the categories that are protected under discrimination law 62 00:04:23,720 --> 00:04:28,080 Speaker 1: are in a sense not fully immutable. Your religion, for example, 63 00:04:28,480 --> 00:04:32,080 Speaker 1: is something that you can choose to change, but most 64 00:04:32,120 --> 00:04:35,680 Speaker 1: Americans don't think it's something you should have to change 65 00:04:35,960 --> 00:04:38,120 Speaker 1: in order to get a job or in order to 66 00:04:38,240 --> 00:04:41,120 Speaker 1: keep a job. Some of the conclusions the judges reach 67 00:04:41,240 --> 00:04:45,760 Speaker 1: in these cases seem unusual to me. To put it mildly, 68 00:04:45,800 --> 00:04:49,719 Speaker 1: To tell us about the New Jersey Casino, there was 69 00:04:49,760 --> 00:04:56,279 Speaker 1: a case brought by the cocktail waitresses at casino in 70 00:04:56,320 --> 00:05:01,080 Speaker 1: New Jersey, who the casino deemed Borgata babes. They argued 71 00:05:01,120 --> 00:05:05,520 Speaker 1: that the company was illegally regulating their weight, restricting the 72 00:05:05,600 --> 00:05:09,080 Speaker 1: number of pounds they were allowed to gain, and the 73 00:05:09,200 --> 00:05:13,440 Speaker 1: judge ruled that in fact, the company legally was entitled 74 00:05:13,480 --> 00:05:18,200 Speaker 1: to regulate its employees weight. He wrote that if you 75 00:05:18,320 --> 00:05:21,440 Speaker 1: are gaining a lot of pounds, your body is telling 76 00:05:21,440 --> 00:05:25,920 Speaker 1: you something. And he also wrote that the plaintiffs can't 77 00:05:26,000 --> 00:05:28,960 Speaker 1: shed the label of babe because it was something that 78 00:05:29,040 --> 00:05:32,000 Speaker 1: they embraced by going to work for the Borgata in 79 00:05:32,040 --> 00:05:34,640 Speaker 1: the first place. This judge, by the way, is also 80 00:05:34,720 --> 00:05:37,919 Speaker 1: the author of the book Boardwalk Empire. How is the 81 00:05:38,040 --> 00:05:42,200 Speaker 1: US catching up with science as far as weight is concerned. 82 00:05:42,520 --> 00:05:44,919 Speaker 1: You know, there are a lot of websites and a 83 00:05:44,960 --> 00:05:49,279 Speaker 1: lot of women talking about how weight shouldn't be a consideration, 84 00:05:49,680 --> 00:05:52,040 Speaker 1: But how is the US catching up with the science? 85 00:05:53,640 --> 00:05:57,560 Speaker 1: Research suggests that our bodies really are more a product 86 00:05:57,640 --> 00:06:01,400 Speaker 1: of our genes and our environment then of our willpower, 87 00:06:02,000 --> 00:06:06,560 Speaker 1: and that when people's weight goes down a lot, that 88 00:06:06,600 --> 00:06:12,480 Speaker 1: tends to be temporary, and having your weight drastically decrease 89 00:06:12,520 --> 00:06:17,880 Speaker 1: and increase repeatedly itself is a risk factor for dangerous 90 00:06:17,880 --> 00:06:23,039 Speaker 1: health conditions over time. In recent years, we've seen the 91 00:06:23,160 --> 00:06:28,080 Speaker 1: growth of a health at Every size movement promoting nutrition 92 00:06:28,160 --> 00:06:32,880 Speaker 1: and exercise that's been gaining ground among nutritionists and doctors 93 00:06:32,880 --> 00:06:37,599 Speaker 1: and patients. We've seen a whole new conversation on social 94 00:06:37,640 --> 00:06:43,680 Speaker 1: media about that shaming and shifting the blame away from 95 00:06:43,800 --> 00:06:48,400 Speaker 1: individuals for their weight and towards companies and brands for 96 00:06:49,120 --> 00:06:53,840 Speaker 1: not serving larger people and for contributing to stigma against 97 00:06:53,960 --> 00:06:59,600 Speaker 1: larger people. We've seen media outlets pivot, in the case 98 00:06:59,640 --> 00:07:04,800 Speaker 1: of magazine, for example, from promoting diets from a cottage 99 00:07:04,880 --> 00:07:10,680 Speaker 1: cheese diet to a Chinese diet to now profiling intuitive 100 00:07:10,680 --> 00:07:14,640 Speaker 1: eating eating what you're actually hungry for when you're actually 101 00:07:14,720 --> 00:07:18,760 Speaker 1: hungry for it. And we've seen legislative efforts to change 102 00:07:18,800 --> 00:07:23,400 Speaker 1: the law to write protections for overweight or obese people 103 00:07:23,760 --> 00:07:26,520 Speaker 1: into the law. Yeah, I have to say that I 104 00:07:26,600 --> 00:07:29,440 Speaker 1: have been on some of those crazy diets. So let's 105 00:07:29,480 --> 00:07:31,960 Speaker 1: talk about the laws. As you point out, more than 106 00:07:32,040 --> 00:07:35,480 Speaker 1: half of the states have laws protecting people who smoke 107 00:07:35,640 --> 00:07:41,080 Speaker 1: cigarettes on their own time, yet only one has a 108 00:07:41,200 --> 00:07:44,520 Speaker 1: law banning discrimination based on weight and a few cities. 109 00:07:44,800 --> 00:07:48,560 Speaker 1: How do those laws make a difference in the state 110 00:07:48,760 --> 00:07:51,560 Speaker 1: or the city, and as far as lawsuits that are 111 00:07:51,600 --> 00:07:57,360 Speaker 1: brought there. The bigger picture here is that most people 112 00:07:57,360 --> 00:08:00,680 Speaker 1: in the US are operating under what's called at unemployment, 113 00:08:00,760 --> 00:08:04,000 Speaker 1: which means your boss can fire you for almost any 114 00:08:04,000 --> 00:08:07,840 Speaker 1: reason or with no reason at all. There are specific 115 00:08:07,880 --> 00:08:13,160 Speaker 1: exceptions to that fiat that managers have in the US, 116 00:08:13,400 --> 00:08:19,040 Speaker 1: like the protections in civil rights laws or in labor 117 00:08:19,160 --> 00:08:23,600 Speaker 1: law letting people organized collectively with at least in theory, 118 00:08:23,720 --> 00:08:28,160 Speaker 1: some protection against getting fired. And in the state of 119 00:08:28,240 --> 00:08:33,080 Speaker 1: Michigan and some cities there are protections that include a 120 00:08:33,120 --> 00:08:37,920 Speaker 1: ban on discrimination based on people's way. In Michigan, we've 121 00:08:38,000 --> 00:08:42,520 Speaker 1: seen a lawsuit brought by a former manager for Coach 122 00:08:42,840 --> 00:08:46,600 Speaker 1: who said the company, when she was petite, promoted her, 123 00:08:46,920 --> 00:08:50,240 Speaker 1: and then once she wasn't fired her and in between 124 00:08:50,760 --> 00:08:54,000 Speaker 1: pressured her to take weight loss hormones and to get 125 00:08:54,080 --> 00:08:59,080 Speaker 1: bariatric surgery, and even asked in a performance evaluation what 126 00:08:59,200 --> 00:09:01,760 Speaker 1: had happened to the version of her that the eight 127 00:09:02,160 --> 00:09:08,360 Speaker 1: lean cuisines every day. That lawsuit was settled on undisclosed terms. 128 00:09:08,400 --> 00:09:12,719 Speaker 1: We've seen in San Francisco a settlement with jazz Er 129 00:09:12,800 --> 00:09:16,920 Speaker 1: Size where the company said it would no longer require 130 00:09:17,040 --> 00:09:20,840 Speaker 1: that its stance fitness teachers look leaner than the public, 131 00:09:21,160 --> 00:09:24,160 Speaker 1: and the company Jazzer Size, in that case said that 132 00:09:24,480 --> 00:09:27,840 Speaker 1: studies had shown that it might indeed be possible for 133 00:09:28,040 --> 00:09:31,120 Speaker 1: people of varying weights to be fit. There was also 134 00:09:31,160 --> 00:09:35,120 Speaker 1: a study in two sixteen which found that the efficacy 135 00:09:35,360 --> 00:09:39,679 Speaker 1: of these protections varies seemingly in part based on how 136 00:09:39,720 --> 00:09:44,120 Speaker 1: strongly enforcement mechanisms are, but that some of them, like 137 00:09:44,320 --> 00:09:50,520 Speaker 1: in Madison, Wisconsin and in Urbana, Illinois, had significantly improved 138 00:09:50,559 --> 00:09:54,360 Speaker 1: the labor market outcomes for people with obesity. It is 139 00:09:54,840 --> 00:09:58,520 Speaker 1: extremely difficult. As we've seen in the history of our country, 140 00:09:58,520 --> 00:10:03,480 Speaker 1: it's extremely difficult to expand civil rights protections. What is 141 00:10:03,520 --> 00:10:07,559 Speaker 1: going on now that might change that. As far as 142 00:10:07,600 --> 00:10:13,120 Speaker 1: weight discrimination, there is a confluence of events that make 143 00:10:13,240 --> 00:10:17,680 Speaker 1: advocates believe they have the best chance in decades now 144 00:10:18,400 --> 00:10:22,559 Speaker 1: to vastly expand the number of Americans who have protection 145 00:10:22,720 --> 00:10:28,440 Speaker 1: against weight discrimination. The science has advanced, the conversation on 146 00:10:28,600 --> 00:10:35,080 Speaker 1: social media has shifted. Other civil rights advances have emboldened 147 00:10:35,160 --> 00:10:39,640 Speaker 1: and inspired people. In New York, for example, there have 148 00:10:40,000 --> 00:10:43,160 Speaker 1: been laws passed in recent years protecting people based on 149 00:10:43,280 --> 00:10:48,240 Speaker 1: gender identity and based on hairstyle, such as afros. We 150 00:10:48,360 --> 00:10:53,800 Speaker 1: saw this watershed Supreme Court ruling interpreting the sex discrimination 151 00:10:54,240 --> 00:10:57,560 Speaker 1: clause in the Civil Rights Act of nineteen sixty four 152 00:10:57,760 --> 00:11:02,560 Speaker 1: to also protect LGBTQ people on the grounds that anti 153 00:11:02,679 --> 00:11:06,520 Speaker 1: gay or anti trans bias is inherently a form of 154 00:11:06,720 --> 00:11:12,120 Speaker 1: sex discrimination. The confluence of those events has given new 155 00:11:12,200 --> 00:11:16,360 Speaker 1: life to efforts at the state level to add weight 156 00:11:16,720 --> 00:11:22,080 Speaker 1: as well as height, to existing discrimination laws, and in 157 00:11:22,240 --> 00:11:26,120 Speaker 1: New York, a new effort is being mounted by prominent 158 00:11:26,200 --> 00:11:31,199 Speaker 1: lawmakers and a retail union. In Massachusetts, a bill that 159 00:11:31,360 --> 00:11:34,360 Speaker 1: has been introduced in different versions for a couple of decades, 160 00:11:34,400 --> 00:11:38,319 Speaker 1: now has passed the Judiciary Committee, and the effort to 161 00:11:38,800 --> 00:11:44,320 Speaker 1: prohibit weight discrimination has now been endorsed by the state's 162 00:11:44,320 --> 00:11:48,160 Speaker 1: attorney generals. Is the likely next governor of Massachusetts. I 163 00:11:48,200 --> 00:11:51,640 Speaker 1: didn't realize this. In Massachusetts, it's been a decades long 164 00:11:51,800 --> 00:11:56,480 Speaker 1: push to try to ban weight bias. Yes, that's right. 165 00:11:56,600 --> 00:12:00,480 Speaker 1: The lawmaker who had been introducing this r and over 166 00:12:01,200 --> 00:12:07,720 Speaker 1: retired and passed the baton on two newer senator who 167 00:12:07,720 --> 00:12:12,080 Speaker 1: says she herself has witnessed weight discrimination in areas of 168 00:12:12,120 --> 00:12:15,280 Speaker 1: her life, from being an attorney, to being a dancer 169 00:12:15,400 --> 00:12:20,560 Speaker 1: to being a parent. In two thousand seven, management side 170 00:12:20,559 --> 00:12:24,400 Speaker 1: attorneys criticized a version of the Massachusetts law, thing that 171 00:12:24,800 --> 00:12:29,080 Speaker 1: it was wrong to treat weight as something immutable that 172 00:12:29,280 --> 00:12:32,959 Speaker 1: is comparable to a category like race, and arguing that 173 00:12:33,040 --> 00:12:37,840 Speaker 1: the law is unnecessary. But recently there has not been 174 00:12:37,960 --> 00:12:43,000 Speaker 1: much vocal opposition from business groups to these pushes for 175 00:12:43,160 --> 00:12:47,679 Speaker 1: new workplace protections around weight. Do you think that's because 176 00:12:48,120 --> 00:12:52,560 Speaker 1: attitudes are changing toward weight, and you know, you talk 177 00:12:52,640 --> 00:12:58,520 Speaker 1: about Katie Stino and what she's been doing. Business lobbies 178 00:12:58,760 --> 00:13:05,559 Speaker 1: argue that the members already opposed and avoid discrimination. Advocates 179 00:13:05,600 --> 00:13:10,600 Speaker 1: for these weight protections say companies would bring down shame 180 00:13:10,720 --> 00:13:16,000 Speaker 1: on themselves if they were vocally advocating for maintaining their 181 00:13:16,080 --> 00:13:19,840 Speaker 1: legal right to discriminate based on weight. I talked to 182 00:13:19,880 --> 00:13:23,240 Speaker 1: a leader of the Michigan Chamber of Commerce who said 183 00:13:23,920 --> 00:13:26,880 Speaker 1: they don't necessarily think everyone should add this protection to 184 00:13:26,920 --> 00:13:31,000 Speaker 1: their law, but that in Michigan they don't hear much 185 00:13:31,240 --> 00:13:34,920 Speaker 1: complaint about it, and that once the laws on the book, 186 00:13:34,960 --> 00:13:36,800 Speaker 1: so you figure out a way to live with it, 187 00:13:36,840 --> 00:13:40,120 Speaker 1: and they have done that there in Michigan. I talked 188 00:13:40,120 --> 00:13:47,120 Speaker 1: to Katie Sterno, consultant and writer and content creator who 189 00:13:47,360 --> 00:13:52,160 Speaker 1: now has six thousand followers on Instagram, where she posts 190 00:13:52,240 --> 00:13:58,080 Speaker 1: things like images of herself remaking celebrities outfits to fit 191 00:13:58,160 --> 00:14:03,040 Speaker 1: her and images of herself on the video trying to 192 00:14:03,080 --> 00:14:07,360 Speaker 1: fit into the largest sizes but some brands provide to 193 00:14:07,440 --> 00:14:11,200 Speaker 1: show that they're not large enough. She now is working 194 00:14:11,200 --> 00:14:16,600 Speaker 1: with Amazon to develop a clothing line include including size 195 00:14:16,880 --> 00:14:20,280 Speaker 1: for X and five X clothing that goes on sale 196 00:14:20,360 --> 00:14:24,800 Speaker 1: this month. Josh, I'm wondering, though, despite the laws that 197 00:14:25,000 --> 00:14:28,520 Speaker 1: are on the books, whether there's still going to be 198 00:14:29,040 --> 00:14:33,480 Speaker 1: internal bias that you can't really prove like a thin 199 00:14:33,600 --> 00:14:36,920 Speaker 1: person getting a promotion over a heavier person. I just 200 00:14:37,000 --> 00:14:41,280 Speaker 1: wonder if that kind of bias is just here to stay. Well, 201 00:14:41,920 --> 00:14:48,760 Speaker 1: balls against discrimination don't eradicate all discrimination, and not everyone 202 00:14:48,840 --> 00:14:53,120 Speaker 1: who is discriminated against succeeds in proving it in court. 203 00:14:53,320 --> 00:14:56,360 Speaker 1: And there are all sorts of obstacles in the US, 204 00:14:56,480 --> 00:15:01,520 Speaker 1: including for st arbitration clauses for example, at prevent people 205 00:15:01,560 --> 00:15:05,480 Speaker 1: who have been discriminated against from vindicating their rights under 206 00:15:05,520 --> 00:15:10,440 Speaker 1: the law. But that said law in social norms influenced 207 00:15:10,480 --> 00:15:15,200 Speaker 1: each other. So the shift in the culture away from 208 00:15:15,400 --> 00:15:20,160 Speaker 1: digmatizing people for their weight is increasing the possibility of 209 00:15:20,160 --> 00:15:24,720 Speaker 1: passing legal protections. In turn, passing new legal protections has 210 00:15:24,960 --> 00:15:28,680 Speaker 1: a social impact as well. One of the lawmakers I 211 00:15:28,680 --> 00:15:32,320 Speaker 1: spoke to referred to it as the educational function of 212 00:15:32,440 --> 00:15:37,720 Speaker 1: the law, and people do look at the law as 213 00:15:38,240 --> 00:15:42,960 Speaker 1: representing something about what's okay in our society or not. 214 00:15:43,480 --> 00:15:49,200 Speaker 1: Thanks Josh, that's Josh Idolson of Bloomberg Business Week. The 215 00:15:49,280 --> 00:15:51,560 Speaker 1: mayor of New York City did it, and many other 216 00:15:51,600 --> 00:15:55,359 Speaker 1: people want to do the same. Get their pay in bitcoin. 217 00:15:55,960 --> 00:16:00,160 Speaker 1: Joining me is Paige Smith, Bloomberg Law reporter you're hearing 218 00:16:00,280 --> 00:16:05,560 Speaker 1: that more employees are asking to be paid in bitcoin. Yes, 219 00:16:05,600 --> 00:16:08,160 Speaker 1: so there are a number of employees and workers in 220 00:16:08,800 --> 00:16:11,520 Speaker 1: a cross industries. To be honest with you, that we're 221 00:16:11,560 --> 00:16:15,360 Speaker 1: sort of looking to a number of different cryptocurrencies, not 222 00:16:15,480 --> 00:16:19,800 Speaker 1: just Bitcoin, to essentially ask for their paychecks in those cryptocurrencies. 223 00:16:19,920 --> 00:16:22,320 Speaker 1: And there are are also some companies that are sort 224 00:16:22,320 --> 00:16:25,520 Speaker 1: of stepping in to help them achieve that because there 225 00:16:25,520 --> 00:16:29,520 Speaker 1: are some legal limitations to what you can and can't 226 00:16:29,560 --> 00:16:32,800 Speaker 1: do when it comes to getting your paycheck in crypto. 227 00:16:33,200 --> 00:16:37,400 Speaker 1: So is it in particular people in the tech industry 228 00:16:37,560 --> 00:16:40,640 Speaker 1: or all over So I spoke with some attorneys who 229 00:16:40,840 --> 00:16:43,760 Speaker 1: have fielded a number of questions from clients on this. 230 00:16:44,320 --> 00:16:47,160 Speaker 1: They've said that it's mostly companies in the text space 231 00:16:47,320 --> 00:16:51,600 Speaker 1: that want to give that opportunity to workers who are 232 00:16:51,600 --> 00:16:55,320 Speaker 1: maybe more familiar with cryptocurrencies and sort of through everyday 233 00:16:55,680 --> 00:16:58,000 Speaker 1: journalists for example. And I know there are a number 234 00:16:58,000 --> 00:17:01,040 Speaker 1: of journalists covering cryptocurrencies, but I think that a lot 235 00:17:01,080 --> 00:17:04,879 Speaker 1: of my friends don't necessarily know the legalities of getting 236 00:17:05,320 --> 00:17:08,000 Speaker 1: your paycheck in crypto. So there are a number of 237 00:17:08,040 --> 00:17:12,520 Speaker 1: folks across industries asking for their paychecks and cryptocurrency. Some 238 00:17:12,680 --> 00:17:15,600 Speaker 1: high profile examples have been you know, the New York 239 00:17:15,600 --> 00:17:18,639 Speaker 1: City mayor Eric Adams, he sort of asked for his 240 00:17:18,720 --> 00:17:22,160 Speaker 1: paycheck in cryptocurrency to push the city to be more 241 00:17:22,200 --> 00:17:25,359 Speaker 1: crypto friendly. Um, and there's been some other folks like 242 00:17:25,440 --> 00:17:28,679 Speaker 1: the Miami mayor and even athletes like Aaron Rodgers have 243 00:17:28,760 --> 00:17:33,120 Speaker 1: at least partially looked into the idea of getting their 244 00:17:33,160 --> 00:17:37,879 Speaker 1: paychecks in crypto. So what about the legalities? Is it legal? 245 00:17:38,359 --> 00:17:41,600 Speaker 1: That's a good question. As it stands right now, all 246 00:17:41,880 --> 00:17:46,120 Speaker 1: wages are dictated by the Fair Labor Standard deck that's 247 00:17:46,119 --> 00:17:49,439 Speaker 1: a statute that was signed into law in night and 248 00:17:49,480 --> 00:17:52,520 Speaker 1: it basically clarifies how you, as a worker can receive 249 00:17:52,560 --> 00:17:56,439 Speaker 1: your wages. So as it stands, currently workers must be 250 00:17:56,480 --> 00:18:00,960 Speaker 1: paid in American currency, so legally, the payment of wages 251 00:18:00,960 --> 00:18:04,800 Speaker 1: in crypto is not recognized at this time. You have 252 00:18:04,920 --> 00:18:08,040 Speaker 1: to get your paycheck in cash or what is called 253 00:18:08,080 --> 00:18:11,520 Speaker 1: a negotiable instrument payable at part like a check. But 254 00:18:11,680 --> 00:18:14,239 Speaker 1: as that being said, there are some ways that you know, 255 00:18:14,280 --> 00:18:18,840 Speaker 1: workers can essentially convert their paychecks into crypto, and there 256 00:18:18,840 --> 00:18:20,959 Speaker 1: are companies that are stepping in to help them do that. 257 00:18:21,040 --> 00:18:25,160 Speaker 1: So companies like payroll service providers who will essentially help 258 00:18:25,200 --> 00:18:28,760 Speaker 1: you as a worker, convert your paycheck into crypto. If 259 00:18:28,800 --> 00:18:31,840 Speaker 1: it isn't strictly legal, how do you account for the 260 00:18:31,880 --> 00:18:34,040 Speaker 1: fact that, as you said, the mayor of New York 261 00:18:34,080 --> 00:18:38,439 Speaker 1: City got paid in bitcoin. So it doesn't prevent you 262 00:18:38,520 --> 00:18:41,800 Speaker 1: as a worker from you know, converting your wages into 263 00:18:41,880 --> 00:18:45,600 Speaker 1: whatever you would like to convert them into. So, for example, 264 00:18:45,680 --> 00:18:49,680 Speaker 1: you can still convert your wages into cryptocurrencies after the fact. 265 00:18:49,800 --> 00:18:52,719 Speaker 1: But I spoke with the CEO of a payroll service 266 00:18:52,760 --> 00:18:55,760 Speaker 1: provider that essentially explained this to me that you know, 267 00:18:55,880 --> 00:18:59,000 Speaker 1: you're still basically being paid in your local currency, but 268 00:18:59,560 --> 00:19:03,199 Speaker 1: it's you're then converting the net amount you're entitled to 269 00:19:03,560 --> 00:19:06,600 Speaker 1: in crypto. So it's sort of a two step process, 270 00:19:06,640 --> 00:19:09,920 Speaker 1: if you will. So you could just as easily buy 271 00:19:09,920 --> 00:19:13,800 Speaker 1: crypto with the sellary you make. That's essentially the process. 272 00:19:14,480 --> 00:19:18,679 Speaker 1: So tell us about this company that will transfer your 273 00:19:18,720 --> 00:19:21,480 Speaker 1: wages to crypto. So there are a number of payroll 274 00:19:21,920 --> 00:19:24,959 Speaker 1: service providers at this time that are, um, you know, 275 00:19:25,000 --> 00:19:28,520 Speaker 1: helping companies offer this service to their workers. So it's 276 00:19:28,560 --> 00:19:30,560 Speaker 1: sort of a benefit if you will. You know, I 277 00:19:30,600 --> 00:19:34,159 Speaker 1: spoke with one ceo the CEO and still founder of 278 00:19:34,560 --> 00:19:38,640 Speaker 1: a company called Papaya Global, who sort of explained to 279 00:19:38,680 --> 00:19:40,480 Speaker 1: me how it would work, which is, you know, you're 280 00:19:40,560 --> 00:19:44,280 Speaker 1: essentially paid in your local currency and then they convert 281 00:19:44,359 --> 00:19:48,560 Speaker 1: the net amount into the cryptocurrency. But that way, your 282 00:19:48,600 --> 00:19:53,360 Speaker 1: employer is still responsible for any sort of required taxes. 283 00:19:53,480 --> 00:19:55,720 Speaker 1: And you know, the CEO said, it's not as if 284 00:19:55,800 --> 00:20:00,200 Speaker 1: they're helping companies or employees pay less in taxes. It's 285 00:20:00,240 --> 00:20:02,880 Speaker 1: just that they're providing this conversion service, if you will, 286 00:20:03,400 --> 00:20:07,880 Speaker 1: so the company pays the employee regularly and stays out 287 00:20:07,920 --> 00:20:12,399 Speaker 1: of this secondary transaction. So I spoke with some attorneys 288 00:20:12,400 --> 00:20:16,560 Speaker 1: who said that legally it would be best to in 289 00:20:16,640 --> 00:20:20,080 Speaker 1: order to mitigate litigation risk, to sort of stay away 290 00:20:20,160 --> 00:20:26,359 Speaker 1: from that secondary transfer or that that sort of conversion process. Basically, 291 00:20:26,520 --> 00:20:29,320 Speaker 1: it would kind of give them a buffer, if you will, 292 00:20:29,560 --> 00:20:34,239 Speaker 1: because it would just mitigate gage related litigation risk. Are 293 00:20:34,280 --> 00:20:38,679 Speaker 1: there tax issues with getting cryptocurrency? Well, I think there 294 00:20:38,680 --> 00:20:41,040 Speaker 1: are a number of different risks when you, as an 295 00:20:41,040 --> 00:20:45,040 Speaker 1: employee opt to you know, opt to investigate. There's are 296 00:20:45,119 --> 00:20:49,040 Speaker 1: up to investigate this this option. Um. I mean, volatility 297 00:20:49,119 --> 00:20:52,919 Speaker 1: is certainly a glaring concern. You know, the value of 298 00:20:52,920 --> 00:20:57,639 Speaker 1: cryptocurrencies can fluctuate very dramatically, and you know, attorneys also 299 00:20:57,760 --> 00:21:00,879 Speaker 1: did say that you know employers are offering this for 300 00:21:00,920 --> 00:21:04,160 Speaker 1: their workers, they should you be very clear that there 301 00:21:04,160 --> 00:21:09,479 Speaker 1: are tax concerns that workers should umplore. I mean capital 302 00:21:09,560 --> 00:21:12,520 Speaker 1: gains taxes kicked in any time a worker solves or 303 00:21:12,560 --> 00:21:16,480 Speaker 1: buys another cryptocurrency, So that is definitely a cost for 304 00:21:16,520 --> 00:21:20,160 Speaker 1: both companies and employees to consider. Thanks so much, Paige. 305 00:21:20,560 --> 00:21:23,760 Speaker 1: That's Paige Smith, Bloomberg Law Reporter for Labor and Employment. 306 00:21:24,200 --> 00:21:26,480 Speaker 1: And that's it for this edition of the Bloomberg Law Show. 307 00:21:26,840 --> 00:21:29,159 Speaker 1: Remember you can always get the latest legal news on 308 00:21:29,200 --> 00:21:33,480 Speaker 1: our Bloomberg Law Podcast. You can find them on Apple Podcasts, Spotify, 309 00:21:33,720 --> 00:21:38,720 Speaker 1: and at www dot Bloomberg dot com, slash podcast Slash Law, 310 00:21:39,160 --> 00:21:41,760 Speaker 1: and remember to tune into The Bloomberg Law Show every 311 00:21:41,800 --> 00:21:45,240 Speaker 1: week night at ten pm Wall Street Time. I'm June 312 00:21:45,280 --> 00:21:47,440 Speaker 1: Grosso and you're listening to Bloomberg