Subway Worker Sues over Required Payroll Debit Card
Workers in nearly 30 Subway fast food restaurants in Texas are allegedly being forced to accept their pay through a payroll debit card, something that is illegal under federal law. One employee has filed a class action lawsuit against the franchisee owners to stop this practice.
Jake Branson, a 25-year-old employee earning minimum wage, has filed the suit in Leander, Texas against Destiny Foods.
While Texas does not have any specific laws regulating payroll debit cards, the federal government does not allow a company to force its employees to open accounts with any specific bank to receive payments. Branson asked to receive paper checks instead of direct deposits onto the prepaid card in an effort to save money on the high cost of fees charged on these payroll cards, but Destiny Foods denied his request.
On Branson’s card, the fees for checking his balance at an ATM were $1 per transaction, and the fees for withdrawing cash were $1.75 each. Furthermore, Branson was having to pay up to 50-cents per swipe when he purchased items from a store. These fees may not sound like much, but they can account for a large portion of a paycheck for someone earning $7.25 an hour.
Destiny Foods pays its nearly 300 employees on Global Cash Cards. It is estimated that paying employees on these payroll debit cards saves Destiny Foods up to $3 per worker each pay period.
Branson is not the only worker to sue a company over payroll debit cards. There have been a handful of cases over the last few years, including ones involving Jimmy John’s and McDonald’s. Destiny Foods has yet to comment on the case.