McDonald’s Employees Sue Franchisee over Payroll Card (July 29, 2014)
Employees and former employees of 16 McDonald’s restaurants across Pennsylvania have filed a class action lawsuit against the restaurants’ owners for violating the law when they allegedly failed to provide a method of receiving wages other than on a payroll card. In addition to the owners, Albert and Carol Mueller, JPMorgan Chase Co. and JPMorgan Chase Bank are named in the lawsuit. Representatives from JPMorgan Chase Co. declined to comment on the lawsuit.
“Specifically, from November 2010 until July 2013 the sole and mandated method of wage payment by the Mueller defendants for their hourly employees was via a Chase payment card,” according to the complaint filed last week in Luzerne County, Pa. “As a result of this practice, hourly employees neither were provided with paper paychecks or direct deposit of their wages, nor given an option as to how to receive their wages.”
The lawsuit also alleges that the plaintiffs had to pay fees, including teller and ATM fees, to withdraw wages from their cards, thus never receiving their full pay. Also alleged is some of the employees were minors at the time they signed applications for the payment card and did so without approval from parents or guardians.
Earlier this year, the Network Branded Prepaid Card Association (NBPCA) joined with consumer advocacy group Consumer Action to develop guides to help companies and employees learn about payroll cards, including how they work, options for accessing wages and how to avoid or limit fees.
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