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Million or two spend on retraining specially when it comes out of budget of teams might not be so bad compared to more oversight from say IRS. I am not sure how meals are handled, but very likely differently from other goods.

Tax and legal implications can be worse than having to fire some people and formal warning showing you did something for others.

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This is the likely real reason - employer provided meals are a big deductible and providing the proper documentation and management of expenses can be a good kickback on providing that perk.

However, once an employee starts putting expenses that won't pass the smell test, it could threaten the perk.

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