Employer sued for ‘forcing’ employees to take paycards

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in Office Management,Payroll Management

The lawsuit hit a Pennsylvania state court in June and came to politicians’ attention shortly after that. Low-wage employees initiated a class-action lawsuit against their employer, alleging that they were forced to receive their wages via paycards, thus incurring fees for accessing their pay.

The lawsuit asks the employer to pony up for those fees. Don’t get caught in a similar situation.

Store manager’s missteps. Employees claim that the store manager told them they had to activate their paycards so they could be paid. Employees were automatically enrolled in the paycard program, and weren’t offered another option, such as direct deposit or checks.

Employees’ first over-the-counter withdrawals were free, which complies with state paycard laws. So it was possible for employees to receive their entire net pay fee-free. However, employees weren’t made aware of that. According to the lawsuit, employees could be subject to the ...(register to read more)

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