Thinking Of Using Payroll Debit Cards? Not In PA

Payroll debit cards can be a useful way for employers like franchisees to pay wages to employees. They are convenient for both employers and employees and, especially for unbanked employees, a way of having ready access to earnings. A recent decision from the Pennsylvania Superior Court in Siciliano, et al., v. Mueller, et al., 2016 PA Super 229, clarifies that mandatory use of payroll debit cards is presently barred by the Pennsylvania Wage Payment and Collection Law (the "WPCL").

The Siciliano case involved a franchisee who operated 16 McDonalds franchises in Pennsylvania. The litigation case was brought as a class action by employees against the franchisee, alleging that mandatory payment of wages via a payroll debit card violated the WPCL. After the trial court denied the franchisee's motion for summary judgment, the court certified that the issue of whether the mandatory use of debit cards for payment of wages was legal under the WPCL was a controlling issue of