1. When there’s a fee to get your pay: Pre-paid payroll card fees mean paying up for getting paidJune 25, 2013
In the years since the financial crisis struck in 2008, it’s often been pointed out that gains for bankers have gone hand in hand with losses for workers. But few cases provide a better example of just how direct that relationship can be than that of Natalie Gunshannon, who says her employer put her in a situation that forced her to pay fees to one of the big banks just to access her wages.
Gunshannon, of Dallas Township, Penn., filed a class action lawsuit this week against a McDonald’s franchise where she worked, claiming that she and other workers were paid not through check or direct deposit, but through a pre-paid JPMorgan Chase debit card. Along with her card, her lawsuit alleges, she received a list of fees she’d incur when she used it: $1.50 for ATM withdrawals; $5 for over-the-counter cash withdrawals; $1 per balance inquiry; 75 cents for online bill pay and $15 if she lost the card or had it stolen from her.
“I need to receive all the money I earn,” Gunshannon, who was being paid around $7.44 an hour,told a local newspaper. “I can’t afford to lose even a few dollars per paycheck. I just think people should be paid fairly and not have to pay fees to get their wages.”
The lawsuit, filed by attorney Mike Cefalo of Cefalo & Associates and provided to In These Times by the firm, alleges that the cards violate the Pennsylvania Wage Payment and Collection Act, which provides that “Wages shall be paid in lawful money of the United States or check.” The suit further alleges that the fees reduce the actual wages workers receive—in some cases bringing them below minimum wage, which in Pennsylvania remains at the federal minimum wage rate of $7.25 per hour.
The lawsuit also notes that managerial employees were paid by regular direct deposit; only hourly workers were stuck with the cards and the fees.
In a statement, Albert and Carol Mueller, the owners of the McDonald’s in question, said that they could not comment on the case, and added, “We are committed to providing them the best possible work environment so [employees] can deliver the fast, reliable service that our customers expect.” (McDonald’s Corporation did not return a request for comment.)
These “payroll cards,” which after being loaded with wages work like a regular debit card, are growing increasingly popular as companies look for alternatives to paper checks and payroll services. Like most debit cards, payroll cards can be used to purchase goods, or they can be used to make withdrawals from banks or ATMs. JPMorgan Chase is one of several banking companies, including Bank of America and U.S. Bank, that offer them.
JPMorgan’s website touts its “Prepaid Card Solutions” as an efficient and cost-effective way to pay employees, calling them a “direct deposit alternative for unbanked and underserved employees.” Cost-effective, apparently, for the employer—who transfers the cost of the service to the workers themselves. As the Consumer Financial Protection Bureau—the government office founded by Elizabeth Warren to inform consumers of their rights when dealing with financial products—explains, employers make arrangements with the financial institution as to the terms of the cards, including “any fees that may be charged to [the employee].”
According to the CFPB, employers “typically” offer the card as one of several payment options and advise employees who opt for the payroll card to read the terms and conditions carefully. But according to Gunshannon’s lawsuit, when she asked if she could be paid another way, she was told, “If you don’t activate the card, there is no way for us to pay you.” She quit, and called a lawyer.
Full article

    When there’s a fee to get your pay: Pre-paid payroll card fees mean paying up for getting paid
    June 25, 2013

    In the years since the financial crisis struck in 2008, it’s often been pointed out that gains for bankers have gone hand in hand with losses for workers. But few cases provide a better example of just how direct that relationship can be than that of Natalie Gunshannon, who says her employer put her in a situation that forced her to pay fees to one of the big banks just to access her wages.

    Gunshannon, of Dallas Township, Penn., filed a class action lawsuit this week against a McDonald’s franchise where she worked, claiming that she and other workers were paid not through check or direct deposit, but through a pre-paid JPMorgan Chase debit card. Along with her card, her lawsuit alleges, she received a list of fees she’d incur when she used it: $1.50 for ATM withdrawals; $5 for over-the-counter cash withdrawals; $1 per balance inquiry; 75 cents for online bill pay and $15 if she lost the card or had it stolen from her.

    “I need to receive all the money I earn,” Gunshannon, who was being paid around $7.44 an hour,told a local newspaper. “I can’t afford to lose even a few dollars per paycheck. I just think people should be paid fairly and not have to pay fees to get their wages.”

    The lawsuit, filed by attorney Mike Cefalo of Cefalo & Associates and provided to In These Times by the firm, alleges that the cards violate the Pennsylvania Wage Payment and Collection Act, which provides that “Wages shall be paid in lawful money of the United States or check.” The suit further alleges that the fees reduce the actual wages workers receive—in some cases bringing them below minimum wage, which in Pennsylvania remains at the federal minimum wage rate of $7.25 per hour.

    The lawsuit also notes that managerial employees were paid by regular direct deposit; only hourly workers were stuck with the cards and the fees.

    In a statement, Albert and Carol Mueller, the owners of the McDonald’s in question, said that they could not comment on the case, and added, “We are committed to providing them the best possible work environment so [employees] can deliver the fast, reliable service that our customers expect.” (McDonald’s Corporation did not return a request for comment.)

    These “payroll cards,” which after being loaded with wages work like a regular debit card, are growing increasingly popular as companies look for alternatives to paper checks and payroll services. Like most debit cards, payroll cards can be used to purchase goods, or they can be used to make withdrawals from banks or ATMs. JPMorgan Chase is one of several banking companies, including Bank of America and U.S. Bank, that offer them.

    JPMorgan’s website touts its “Prepaid Card Solutions” as an efficient and cost-effective way to pay employees, calling them a “direct deposit alternative for unbanked and underserved employees.” Cost-effective, apparently, for the employer—who transfers the cost of the service to the workers themselves. As the Consumer Financial Protection Bureau—the government office founded by Elizabeth Warren to inform consumers of their rights when dealing with financial products—explains, employers make arrangements with the financial institution as to the terms of the cards, including “any fees that may be charged to [the employee].”

    According to the CFPB, employers “typically” offer the card as one of several payment options and advise employees who opt for the payroll card to read the terms and conditions carefully. But according to Gunshannon’s lawsuit, when she asked if she could be paid another way, she was told, “If you don’t activate the card, there is no way for us to pay you.” She quit, and called a lawyer.

    Full article

    1. tmello02 reblogged this from thepeoplesrecord
    2. creativedaydreamer reblogged this from thepeoplesrecord
    3. fun-little-blade reblogged this from thelastblackman
    4. ceejaysmind reblogged this from thelastblackman
    5. southerntease reblogged this from wayleftfield
    6. spliffmastergeneral reblogged this from thelastblackman
    7. wayleftfield reblogged this from thelastblackman
    8. truetxxyetruele reblogged this from thelastblackman
    9. benotafraidoffear reblogged this from thelastblackman
    10. thelastblackman reblogged this from masteradept
    11. chichiwho reblogged this from anindiscriminatecollection
    12. trackmomx2 reblogged this from anindiscriminatecollection
    13. hannahbanana618 reblogged this from needsmoreandroidslashfic
    14. keebiekneebiez reblogged this from dilemmagoldman
    15. needsmoreandroidslashfic reblogged this from blackmagicalgirlmisandry
    16. dael-io-lantern reblogged this from blackmagicalgirlmisandry
    17. lespetitsdreads reblogged this from witchwolfprince
    18. witchwolfprince reblogged this from dilemmagoldman
    19. blackmagicalgirlmisandry reblogged this from dilemmagoldman
    20. the-great-skeleton-lord reblogged this from dilemmagoldman
    21. dilemmagoldman reblogged this from tumblingintosoc
    22. tumblingintosoc reblogged this from sociolab
    23. littlebigtiger reblogged this from socio-logic
    24. ceeissquared reblogged this from socio-logic
    25. mscontrarian reblogged this from socio-logic and added:
      WOW! This is so unbelievably deplorable
    26. theoriginaljesuspussy reblogged this from theparanormalpenis
    27. thetragiccomedian reblogged this from selekuos
    28. thesapphiretree reblogged this from socio-logic
    29. socio-logic reblogged this from sociolab

The People's Record

Paper theme built by Thomas

Recent Post

Read more