Payroll Cards – Convenience Or Crooked?

More and more, employers are ditching the traditional paper check and providing wages to their employees via a payroll card which works much like a debit card or gift card. But, some of those payroll cards come with fees and that has spawned litigation around the country.

Here in Florida, Florida Statute § 532.01 was amended in 2009 to include payroll cards as a permissible form of wage payment. Employers that choose to use payroll debit must ensure that the instrument is negotiable and payable in cash, on demand, without discount, at an established place of business in the state, the name and address of which must appear on the instrument or in the payroll debit card issuing materials. But, that doesn't mean that fees associated with payroll cards are not permitted. Rather, just like a check cashing fee, if an employee chooses to use his payroll card at a location where he will incur fees that is his choice.