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from In These Times:
When Theres a Fee to Get Your Pay
By Sarah Jaffe
In the years since the financial crisis struck in 2008, its often been pointed out that gains for bankers have gone hand in hand with losses for workers. But few cases provide a better example of just how direct that relationship can be than that of Natalie Gunshannon, who says her employer put her in a situation that forced her to pay fees to one of the big banks just to access her wages.
Gunshannon, of Dallas Township, Penn., filed a class action lawsuit this week against a McDonalds franchise where she worked, claiming that she and other workers were paid not through check or direct deposit, but through a pre-paid JPMorgan Chase debit card. Along with her card, her lawsuit alleges, she received a list of fees shed incur when she used it: $1.50 for ATM withdrawals; $5 for over-the-counter cash withdrawals; $1 per balance inquiry; 75 cents for online bill pay and $15 if she lost the card or had it stolen from her.
I need to receive all the money I earn, Gunshannon, who was being paid around $7.44 an hour, told a local newspaper. I cant afford to lose even a few dollars per paycheck. I just think people should be paid fairly and not have to pay fees to get their wages.
The lawsuit, filed by attorney Mike Cefalo of Cefalo & Associates and provided to In These Times by the firm, alleges that the cards violate the Pennsylvania Wage Payment and Collection Act, which provides that Wages shall be paid in lawful money of the United States or check. The suit further alleges that the fees reduce the actual wages workers receivein some cases bringing them below minimum wage, which in Pennsylvania remains at the federal minimum wage rate of $7.25 per hour. .....................(more)
The complete piece is at: http://inthesetimes.com/working/entry/15178/mcdonalds_franchise_sued_over_payroll_debit_cards/
xchrom
(108,903 posts)Have read that many states also use fee laden bank cards for unemployment.
MattBaggins
(7,905 posts)It's criminal.