Payroll cards are seemingly ever-growing in popularity. They act just like a debit card and give you quick and easy access to your money. The employee doesn’t need a bank account, and the employer doesn’t have to pay check-cashing fees. The employer gives you a card, dumps the wages in your account, and everyone carries on their merry way.
Simple? Not quite.
The Consumer Financial Protection Bureau (CFPB) recently released a guideline that reiterated the employee’s rights when it comes to receiving wages. Employers must now abide by Regulation E, which states that employees do not have to accept wages by payroll card if they don’t want to. The employer must give you other options. Furthermore, if you are paid via payroll card, you should be aware of your rights that come with the card: disclosures (including any fees), access to account history, limited liability for unauthorized transfers, and error resolution rights. Payroll cards are even unlawful in some states. Often there may be charges or inconveniences involved that your employer has withheld from you, meaning you are not paid the correct wage.
If you have a question about payroll cards, please call us today.