As long as "no cash value" means they don't get summed in topline total comp, and that they can't be used to circumvent minimum wage, I don't see an obvious pro

As long as "no cash value" means they don't get summed in topline total comp, and that they can't be used to circumvent minimum wage, I don't see an obvious problem. If it's a bad offer, it's a bad offer. If there aren't enough good offers, forbidding a weird benefit probably won't fix that anyway.