Prepaid Wage Cards May Violate Wage Laws

An increasing number of mostly hourly workers are being paid their wages by prepaid cards instead of by check or direct deposit. Employees are able to use these prepaid cards like debit cards to withdraw their pay at an A.T.M. But in most cases, using these prepaid cards requires the employee to pay a fee. For example, prepaid payroll card providers may charge a fee to make a withdrawal at an A.T.M., a fee to receive a paper statement, a fee to replace a lost card, overdraft fees, transfer fees, and even a fee for inactivity for not using the prepaid card. After the fees for use of these prepaid payroll cards are taken into account, some employees can end up making less than the minimum for hours worked. If your employer pays you your wages with a prepaid payroll card, call Bober & Bober, P.A. at 800-995-WAGE (9243) for a free consultation about whether the prepaid card fees being deducted from your wages violates minimum wage or overtime wage laws.

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