Employers can't force debit card on their workers
Published: Wednesday, 2 Oct 2013 | 6:00 AM ET
Paychecks are so yesterday.
Many employers prefer to use a prepaid debit card, what's commonly called a payroll card, to pay their employees. This may be convenient for them, but they cannot force you to receive your wages this way.
The Consumer Financial Protection Bureau recently issued a letter to employers reminding them of the law and warning them that the agency intends to use its enforcement power to stop violations.
"Employees have a choice," said Marla Blow, an assistant director at the CFPB. "It's the law."
The CFPB has received complaints from employees that some companies, especially fast-food restaurants and retail stores, pay all their employees with payroll cards. Workers said they were upset about high and unexpected fees for routine transactions, such as checking the card balance and withdrawing cash.
More: http://www.cnbc.com/id/101078646
