Senate Dems Want Federal Probe Of Employee Payroll Cards

Law360, New York (July 12, 2013, 2:00 PM EDT) -- The controversial practice of paying employees with prepaid payroll cards warrants federal review into whether the payment method — which often involves fees that can pull hourly workers’ pay to below minimum wage — are exploitative or unlawful, Senate Democrats said Thursday.

Federal agencies should clarify if current laws permit the practice by some large employers, some of whom receive commission payments for signing up their employees to such cards, the democrats, including Sens. Charles Schumer, D-N.Y., and Elizabeth Warren D-Mass., said in a letter Thursday...
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