Paycheck by Debit Card
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    Posting Addict GloriaInTX's Avatar
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    Default Paycheck by Debit Card

    Should an employee have a choice in the method that they receive their paycheck?

    In a handful of cities, some fast-food workers have protested in recent months, agitating to have their pay nearly doubled to $15 an hour. But Natalie Gunshannon wasn't one of them. A McDonald's worker at Shavertown, Pa., just 24 miles from Scranton, she says that she initiated a class-action lawsuit against the McDonald's franchise for a simple reason: "I am looking for the pay I am owed."

    Hired on April 24, Gunshannon discovered that the Shavertown McDonald's franchise pays workers only with JPMorgan Chase debit cards -- and requires workers to cover the debit fees, according to a report by CitizensVoice.com, a local news outlet.

    Gunshannon reportedly was to be paid $7.44 per hour, a little more than the minimum wage. But as the TimesLeader.com reports, the payroll card had several fees, including $1.50 for ATM withdrawals, $5 for over-the-counter cash withdrawals, $1 per balance inquiry, 75 cents per online bill payment and $15 for lost or stolen card.

    Gunshannon asked the franchise owner's office if she could be paid by check or direct deposit, and was told no. So the 27-year-old single mother of one refused to sign the debit card, quit and contacted a lawyer, who filed a class-action suit on Thursday. "I can't afford to lose even a few dollars per paycheck," Gunshannon told the local paper.

    Mike Cefalo, her attorney, told the TimesLeader that the franchise's action was another case of "corporate greed" and a violation of state law, which gives workers the choice to be paid by check or cash. The lawsuit seeks unspecified monetary and punitive damages.

    A spokeswoman for the franchise told news organizations that it hadn't seen a copy of the suit yet, but stressed "we value our employees" and "we are committed to providing them the best possible work environment."

    According to ADP, a well-known payroll processor, payroll debit cards can benefit workers who don't have bank accounts. "If you don't have a bank account you must often rely on the expensive check cashing stores," ADP says in its literature, adding debit cards are more secure than carrying "large amounts of cash, which can be subject to loss or theft."

    In 2012, the Consumers Union and National Consumer Law Center created guidelines for using these payroll debit cards. Top on their list: "Employees must be able to access their full wages, at least once each pay period, without cost."
    McDonald's Sued Over Paying Workers With Debit Cards - Careers Articles
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    Gunshannon reportedly was to be paid $7.44 per hour, a little more than the minimum wage. But as the TimesLeader.com reports, the payroll card had several fees, including $1.50 for ATM withdrawals, $5 for over-the-counter cash withdrawals, $1 per balance inquiry, 75 cents per online bill payment and $15 for lost or stolen card.

    Gunshannon asked the franchise owner's office if she could be paid by check or direct deposit, and was told no. So the 27-year-old single mother of one refused to sign the debit card, quit and contacted a lawyer, who filed a class-action suit on Thursday. "I can't afford to lose even a few dollars per paycheck," Gunshannon told the local paper.

    Mike Cefalo, her attorney, told the TimesLeader that the franchise's action was another case of "corporate greed" and a violation of state law, which gives workers the choice to be paid by check or cash. The lawsuit seeks unspecified monetary and punitive damages.
    I would be seriously pissed! I agree with her lawsuit and hope McDonald's has to fix this problem.

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    Posting Addict GloriaInTX's Avatar
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    I agree I think they should have an option to get a check or at the very least be able to transfer the balance into your checking account for free. I didn't even know employers did this until my son worked for Cinemark a few years ago and they did the same thing. I do think he was at least able to get his money out without paying fees though, but I am not positive. It wasn't as big a deal for him at the time because he was still in high school when he had that job and didn't have his own bank account, so I'm not sure if he had a choice or not.
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    I think that's the weirdest thing I've ever heard and I've not known of anyone personally that is paid in debit form. Checks and direct deposit only.

    I am glad she sued and I hate lawsuits. You should not have to pay large amounts of money to access your pay.
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    I wouldn't mind it being offered as an option ~ I agree that it is WAY kinder than making people go to check cashing places where they get ROBBED, I mean, theoretically they only need pay $1 or whatever to pull out all of the money on the card, which is nothing as compared to the huge chunk the check cashing places take. That said, and especially if it is not in compliance with state or federal laws, having it be the only option is unfair and illegal and hopefully the lawsuit will bring an end to it. Also that being said, I would hope that the lawsuit is not seeking damages (ie is not punitive ~ in PA that would be very hard to get)....but merely is seeking to end the unfair practice. Personally I think that she was foolish to quit her job over it, presuming she needed the job. That doesn't make sense to me, but what do I know.
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    Quote Originally Posted by GloriaInTX View Post
    It wasn't as big a deal for him at the time because he was still in high school when he had that job and didn't have his own bank account, so I'm not sure if he had a choice or not.
    This absolutely blows my mind. Why wouldn't your son have a bank account? My kids have bank accounts, I got my first one when I was 5. Many banks and credit unions give free accounts to children, this is a fantastic way for kids to understand money. Is it illegal to have one under 18 where you are?
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    I hadn't thought about that. My kids have bank accounts too and they're 5 and 9. My dad took us all to get our own accounts when we were little. . .omg I remember that I'd saved up to start mine: $1.14. Opening balance. lol
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    My kids have savings accounts now and have since they were just babies. I had a savings account and then I opened a checking when I got my first real job at 16.
    Mom to Elizabeth (5) and Corinne (3)

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    I tried to respond yesterday but don't know what happened! Yeah, about the bank account thing. I don't quite understand someone not having a bank account if they are gainfully employed unless they're trying to dodge some collector. Then again, that's what garnishment is for. Still, that can take some time to catch up to a person - getting their wages garnished.

    I've had a bank account since I was like 5. My kids have had one together since Ben was born. I didn't have to put any big chuck of cash into their account when I opened it. I actually don't remember if I had to put anything in though I'm sure I did. Learning how to bank and seeing an account balance fluctuate (and mainly GROW) is important, I think. Yeah, there are fees and stuff but such is life. Not many free services out there, unfortunately.

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    Our savings accounts for the kids are free and our checking account is free. Go credit unions!
    Mom to Elizabeth (5) and Corinne (3)

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