Bureau Warns Employers Against Forcing the Use of Payroll Cards
September 23, 2013
The CFPB recently put out a bulletin warning employers that they cannot require their employees to receive wages on a payroll card. The bureau said it has received reports of employers, particularly in the retail and food service industries, distributing wages solely through payroll cards. However, the bureau said federal law prohibits employers from mandating that employees receive wages exclusively on a payroll card. Further, some employees receiving wages on employer-sponsored payroll cards have complained to the CFPB about...