EMPLOYERS PAYING EMPLOYEES WITH PRE-PAID PAYROLL CARD OR DEBIT CARDS- CAUSING HOURLY RATE TO DROP BELOW MINIMUM-WAGE
The Fair Labor Standards Act states “Every employer shall pay to each of his employees… wages at… $7.25 an hour.” 29U.S.C. § 206(a). Pre-paid payroll cards have provided employers a way to save money immediately on payroll fees. However, the employer’s costs have been transferred to the minimum-wage employees in the form of the following fees:
- ATM Cash Withdrawal Fee
- Account-to-Account Transfer Fee
- Monthly Maintenance Fee
- Non-Monetary Transactions at ATM Fee
- Non-Monetary Transactions-Via Toll Free Number Fee
- Lost or Stolen Card Fee
- Stop Payment Fee
- Inactivity Fee
- ATM Transaction Decline Fee
- Check or Additional Statement Mailing Fee
If you are working a job that requires you to receive your payroll wages on a pre-paid card and wish to speak to an attorney, please contact Rocco Calamusa at rcalamusa@wigginschilds.com, and Patrick Pantazis ppantazis@wigginschilds.com.