New York Investigates Walmart, Home Depot (& Others) Over Payroll Prepaid Cards

New York Investigates Walmart, Home Depot (& Others) Over Payroll Prepaid CardsPrepaid debit cards issued instead of traditional paychecks seem to be finally getting the attention of authorities, despite the practice being around for years among big retailers.
The problem is that big banks are generating more revenue off the backs of these workers by charging certain fees on these prepaid cards.
Now, Walmart, Home Depot, Time Warner Cable and Darden Restaurants  (parent company of Olive Garden, Red Lobster, and LongHorn Steakhouse) are among the companies being investigated by the New York attorney general over such card fees charged employees, Bloomberg reports.
The companies are being asked for information about their prepaid payroll cards, including disclosures to employees and precise fees that workers have to pay, according to letters obtained by Bloomberg News.
“We are concerned about excessive or insufficiently disclosed fees which may unduly reduce employees’ take-home pay,” New York Attorney General Eric Schneiderman’s office said in the letters to the companies dated July 1, Bloomberg said.
New York officials want to determine whether their practices comply with New York labor law, according to the letters.
Other companies contacted by the attorney general are Costco and Walgreen.
New York state law requires that employees must give advance written consent to be paid by payroll cards and any agreement to receive wages by the cards can’t be a condition of employment, the attorney general’s office said.
In a Pennsylvania lawsuit that put the issue of payroll debit cards into the national spotlight, a former McDonald’s worker alleged that she was forced to accept her wages on a prepaid debit card and that the owners of her franchise refused her requests to have her pay direct-deposited into her account.
Last week, the franchisees in the case changed their policy to give employees the option of getting paid in traditional forms, such as paychecks or direct deposit.

One thought on “New York Investigates Walmart, Home Depot (& Others) Over Payroll Prepaid Cards

  • July 8, 2013 at 8:47 am

    This is so ABSURD! The poor people are continuing to be robbed by Cooperate America. Minimum wage workers having to continue to pay for cooperate bonuses and kickbacks!

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