McDonald’s Franchise Discontinues Mandatory Payroll Debit Cards
The McDonald’s franchise that created some negative media attention by only paying employees with fee-heavy debit cards has consented to offer other payment options to their workers.
The franchise operated 16 stores in northeast Pennsylvania and paid employees with a payroll debit card, not a check or a direct deposit. The card had a fee for almost every transaction, including $1 to check the balance, $5 for over-the-counter cash withdrawals, $1.50 per ATM withdrawal and $10 a month if the card is inactive for three months.
One employee, Natalie Gunshannon, brought suit against the company, claiming that she quit her job because the payroll card fees cut into her paychecks. The lawsuit alleged that these fees not only reduced the wages that workers earn, but also brought some employees below the minimum wage.
Employees can now choose to be paid with a check, direct deposit or a payroll card.
The information contained within this article was accurate as of July 12, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.