Payroll cards are an increasingly popular way for employers in Las Vegas and around the country to pay their employees. These cards can be an attractive option for employers who are looking to cut costs associated with handing out paper checks. They may also be advantageous for employees, especially those without a bank account. A payroll card may provide employees with a faster and safer way of getting paid than a traditional check can. Employees can typically use the card just like they would a credit or debit card.
A McDonald's employee who was paid through a payroll card has filed a business litigation lawsuit against her employer, stating that because the card charged fees, employees oftentimes received less than minimum wage. The woman worked at the Pennsylvania McDonalds part-time for three weeks during which time she earned around $7.44 an hour. The state's minimum wage is $7.25 an hour.
The woman is hoping her lawsuit will obtain class action status and that other employees will join her in her claim. She alleges that her employer did not allow her to have the choice between the card and other methods of payment such as a paper check or direct deposit. She also said that her manager told her that she would not be able to be paid if she did not activate the card.
At issue here is whether or not the McDonald's franchise owner offered the employee a choice in the way she would like to be paid. If a payroll card was the only option, this is typically a violation of state and federal laws. The owner would be well advised to speak with an attorney about this case.
Source: ABC News, "McDonald's Worker Says She Was Required to Receive Pay on Fee-Laden Debit Card," Susanna Kim, June 17, 2013