This is a great idea, no legal issues. The important thing is that since the candidate loses 2 hours of his time working on the problem, the employer has to lose something equivalent of that too.
I would be much more willing to do the project if I knew the employer would lose $200. Among other things, this shows that I'm valued.
I would be much more willing to do the project if I knew the employer would lose $200. Among other things, this shows that I'm valued.