The U.S. Attorney’s Office has asked the U.S. Department of Labor to look into the use of debit cards to pat employees to determine if federal action is necessary. The action was sparked by a Pennsylvania lawsuit against McDonald’s. McDonald’s paid the employee with a debit card. Heidi Havens, department spokeswoman for the DOJ would not comment on what the Labor Department is investigating.
The employee was paid with a debit card, it had bank fees that included $1 to check the employees balance, $1.50 to withdraw cash and $15 to replace a lost card. The employee was under the impression the pay was $7.44 an hour. The employee refused to use the debit card because the fee deductions could bring the hourly rate below the Federally Mandated minimum wage of $7.25. The Labor Department said if the fees do not bring the wage below $7.25 it does not violate the Fair Labor Standards Act.
The employee said the debit card was the only option to recieve pay. McDonald’s refused to use a paper check or direct deposit. Rather than incur the fees the employee quit. Mike Fusco, spokesman for JP Morgan Chase in New York City, said he couldn’t comment on a specific case. He did say his company provides debit cards as an option to recieve wages. He also said there are ways for employees to access their cash for free. He believes debit cards offer much more efficiency and fraud protection.
The suit that was filed seeks an unspecified amount of monetary damages and asks for punitive, compensatory and liquidated damages, plus lega fees and litigation costs against McDonalds. It is against the companies ill-gotten gains contrary to justice, equity, good concious and Pennsylvania law.
What person wants a fee riddled debit card instead of a paper check or direct deposit. This is a freedom no one thinks about. I work for my check, I don’t want a card that takes away my money through fees. $7.44 is not much anyway and McDonald’s and JP Morgan Chase seem to have a scam going on. Obviously the politics are simple, Democrats are against it, Republicans are for it. Typical if it is corporation or people, Republicans choose corporations.