|Posted:||February 3, 2015 10:56 AM|
|From:||Representative Gerald J. Mullery|
|To:||All House members|
|Subject:||Debit Cards for Payment of Wages|
|In the near future, I plan to re-introduce former House Bill 2274, P.N.3587 of the 2013 – 2014 session. This legislation amends the Wage Payment and Collection Law allowing employers to pay an employees’ wages in the form of a debit card. In addition, this bill provides for employee protections by limiting fees and increasing penalties for those employers found to be in violation of the law.
A growing trend among employers has been to distribute an employee’s wages via debit cards, instead of by check or electronic funds transfer. Often these payroll debit cards are brimming with hidden fees, having an adverse effect on employees compensated in this manner. Once the associated fees have been deducted, employees paid by payroll debit card may find their income significantly reduced.
In 2013, a class action lawsuit was filed by employees of a Shavertown, PA fast food restaurant. The employees were forced to accept payment of their wages via debit cards laden with hidden fees. According to the Scranton Times-Tribune, transaction fees ranged from $0.75 for online bill payment, up to $10 per month if the card remained inactive for a period of more than three months.
My legislation establishes requirements and parameters for employers using payroll debit cards in the payment of employee wages, ensuring increased protection for workers. Required guidelines will not only ensure that employees have access to the full amount of their wages, but are provided with unlimited, no-cost access to their accounts.
It is imperative that employees be paid a fair day’s pay for a fair day’s work. I hope you will join me in co-sponsoring this important legislation.
Introduced as HB1274