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November 19, 2015

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Companies Can't Force Workers to Accept ‘Payroll Cards’

April 1, 2015

 

Companies cannot require workers to receive payment of their wages via “payroll cards,” according to the federal Consumer Financial Protection Bureau.

 

Payroll cards have become popular recently, especially in the retail and food service industries. But under federal law, a company can’t make the cards the exclusive way it offers to pay wages. State laws may impose further restrictions on the cards.

 

Employees who receive wages via the cards are entitled to other types of legal protections, according to the Bureau. These include disclosure of fees for ATM use, teller withdrawals and balance checks; access to account histories; and limited liability for unauthorized use of a card.

 

Image courtesy of stockimages at FreeDigitalPhotos.net

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