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Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2013 - 2014 Regular Session


Posted: June 19, 2013 02:54 PM
From: Representative Ed Neilson
To: All House members
Subject: Request for Co-sponsorship: Debit Cards for Payment of Salaries
In the near future, I plan to introduce legislation prohibiting employers in the state from paying their employees’ salaries with debit cards.

It has recently come to my attention that employers in the state are utilizing debit cards in the payment of salaries to their employees. Ridden with hidden fees, an employee who is compensated in this manner receives a wage reduced by numerous card transaction fees, thereby reducing the actual amount of their income.

Garnering national attention, a recent article in the Scranton Times-Tribune describes the resulting class action lawsuit filed by employees of the Shavertown McDonald’s who were forced to accept payment of their wages via debit cards laden with hidden fees. According to the Times-Tribune article, examples of the transaction fees charged when employees use the payroll cards range from $.75 for online bill payment, to $10 per month if the card remains inactive for a period of more than three months.

My legislation will ban the practice of compensating employees via the use of debit cards by amending Act 329 of 1961, the Wage Payment and Collection Act. Practices like these, inflicting unnecessary harm to our workers, must be stopped. Especially in these times of economic challenge, it is imperative that employees be paid a fair day’s pay for a fair day’s work. As committed legislators, we must protect the rights of our workers, ensuring that they receive every cent of their hard-earned pay.

I hope you will join me in co-sponsoring this important legislation.

Introduced as HB1814