12/17/2014

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Consumer

Getting your paycheck via debit card? You have some rights

SEATTLE -- How do you get your pay?

A lot of employers prefer to use prepaid debit cards, what are commonly called payroll cards. They're significantly cheaper than cutting a check and work for people who don't have a bank account for direct deposit.

Payroll cards may be convenient for the boss, but you can't be forced to receive your wages this way. That's the law and the Consumer Financial Protection Bureau says it will take action against any company that violates the law.

Workers at fast food restaurants and retail stores have complained that there are a lot of fees to use a payroll card for routine things such as checking the card balance and withdrawing cash. That's why an employer cannot require that you get your wages this way.

If you do chose to get your pay on a payroll card, you are entitled some specific protections from your employer.

You must be told about fees in writing and you must be able to get your balance by phone. Also, your liability is limited if you report unauthorized use within a certain time period.

More Info:
Feds: Employers can't force payroll debit cards on workers
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