Don’t require payment via prepaid debit cards, feds say — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Don’t require payment via prepaid debit cards, feds say

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in Office Management,Payroll Management

The U.S. Consumer Financial Pro­­tec­­tion Bureau last month warned employers that they cannot require employees to be paid using prepaid payroll cards. “Consumers must have options when it comes to how they receive their wages,” the agency announced.

More employers have begun paying hourly, temporary and seasonal workers with reloadable prepaid cards. The cards can be used like debit cards, even if employees don’t have checking accounts. The agency also said employers must disclose fees associated with the cards and allow employees to check their balances. State laws may also apply.

Check out a list of state laws on debit cards and direct deposit rules.

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