Supporters claim paying by debit card would be a boon to employees who do not have personal checking accounts. They say guaranteeing that employees won’t have to pay fees to access their money helps both employers and employees.
Fees that effectively reduce a worker’s wage below minimum wage could subject the employer to sanctions under the Fair Labor Standards Act.
Several years ago, Pennsylvania began a similar program for those receiving child support. However, child support recipients are not guaranteed the full amount of their support and sometimes pay fees to access their money.