Does giving away a vendor's gift card constitute a kickback?

Full question:

I was fired from my job. I am in healthcare and a gift card was put on my desk at Christmas from a vendor that I us for durable medical equipment. I did not accept the card however I gave it to a staff person who was in need. Does this still constitute kick-back? I use various vendors so I am not loyal to anyone. I found out later it was a Walmart gift card for I believe 25.00. Thank you.

  • Category: Criminal
  • Date:
  • State: North Carolina

Answer:

Many companies have policies regarding the acceptance of gifts from vendors, which are often communicated to employees upon hiring. Accepting or soliciting gifts can be viewed as bribery and violate standard business ethics. Kickbacks involve undisclosed payments or gifts offered in exchange for business referrals or increased business. Receiving or soliciting any form of remuneration, including gifts, in return for business referrals may violate these policies.

If your employment involved federally funded programs like Medicare or Medicaid, it would fall under the federal anti-kickback statute (42 U.S.C. 1320a-7(b)). This law prohibits knowingly offering, paying, soliciting, or receiving remuneration to induce referrals for services covered by these programs. Some courts have ruled that the government must prove specific intent to violate this law to establish a case.

Violating the anti-kickback law is a felony, with penalties including fines up to $25,000 per violation, imprisonment for up to five years, and exclusion from government health care programs. The Balanced Budget Act of 1997 introduced civil fines of up to $50,000 for each violation and assessments of three times the kickback amount. North Carolina also has its own anti-kickback statute applicable to healthcare services.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, employers can generally deduct the cost of gift cards given to employees as a business expense. However, the IRS has specific rules regarding the tax treatment of such gifts. If the gift card is considered a form of compensation, it may be subject to payroll taxes. It's important for employers to maintain proper records and ensure compliance with tax regulations. Consulting a tax professional is advisable to understand the implications fully. *Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.*