Single mother Natalie Gunshannon took a job at a Pennsylvania McDonald’s in April, hoping to support her daughter.
She quit three weeks later, when her first paycheck came in the form of a prepaid debit card, Philly.com says.
She asked about getting a check or direct deposit instead, but both her supervisor and the franchise holder told her the prepaid card was the only option, Philly.com says. She quit, got an attorney, and sued.
Gunshannon argues that after accounting for the fees on the card, she would actually be making less than minimum wage. There are fees for doing just about anything other than swiping the card, Philly.com says:
She was to be paid about $7.44 per hour – her paystub didn’t list her hourly rate. Minimum wage is $7.25.
According to the complaint filed, the JPMorgan Chase payroll card lists several fees, including a $1.50 charge for ATM withdrawals, $5 for over-the-counter cash withdrawals, $1 per balance inquiry, 75 cents per online bill payment and $15 for lost/stolen card.
At least Bank of America and Visa offer similar prepaid cards that are designed as an alternative to traditional paychecks. But Pennsylvania law requires an option to be paid in cash or by check, Philly.com says.
“I can’t afford to lose even a few dollars per paycheck,” Gunshannon told Philly.com. “I just think people should be paid fairly and not have to pay fees to get their wages.”
This article was originally published on MoneyTalksNews.com as 'McDonald’s Worker Sues Over Being Paid by Prepaid Card'.