Employers Paying Employees with Pre-Paid Payroll Card or Debit Cards- Causing Hourly Rate to Drop below Minimum-Wage

The Fair Labor Standards Act states “Every employer shall pay to each of his employees… wages at… $7.25 an hour.” 29U.S.C. § 206(a).  Pre-paid payroll cards have provided employers a way to save money immediately on payroll fees.  However, the employer’s costs have been transferred to the minimum-wage employees in the form of the following fees:

  • ATM Cash Withdrawal Fee
  • Account-to-Account Transfer Fee
  • Monthly Maintenance Fee
  • Non-Monetary Transactions at ATM Fee
  • Non-Monetary Transactions-Via Toll Free Number Fee
  • Lost or Stolen Card Fee
  • Stop Payment Fee
  • Inactivity Fee
  • ATM Transaction Decline Fee
  • Check or Additional Statement Mailing Fee

If you are working a job that requires you to receive your payroll wages on a pre-paid card and wish to speak to an attorney, please contact Rocco Calamusa at rcalamusa@wigginschilds.com, and Patrick Pantazis ppantazis@wigginschilds.com.