After deducting fees like state and federal taxes, most workers have a clear understanding of how much money they will take home from any given paycheck. Whether they’re paid on salary or hourly wages, employees in Minnesota and throughout the country can also typically count on receiving no less than minimum wage. However, it seems that such givens can be compromised by a practice that is fast gaining popularity among employers.
Many employers around the country have found that compensating workers through payroll cards is a much more cost-effective method than printing checks. However, some employers might not take into consideration how their efforts to save money can cost their employees.
According to the National Consumer Law Center, employers cannot force workers to accept their pay in the form of a payroll card. They also have to have to offer it in check, cash and direct deposit form. One worker is claiming that’s just what her employer did though.
The woman’s employment law complaints are centered around allegations that she and her coworkers were forced to be paid solely through payroll cards. She claims that her employer, a McDonald’s franchise, relied on payroll cards with steep fees and refused her request to have her pay sent through direct deposit. The employee also argues that some employees’ pay was essentially pushed below the minimum wage level because of the fees attached to the payroll cards.
The worker filed a lawsuit she hopes will soon include her coworkers as plaintiffs in the case. If any employee feels that their wages are being mishandled or withheld, they may seek legal counsel to safeguard their livelihood and employee rights.
Source: ABC News, “McDonald’s Worker Says She Was Required to Receive Pay on Fee-Laden Debit Card,” Suzanna Kim, June 17, 2013