--- title: "USE OF PAYROLL CARDS RAISING LEGAL AND STRATEGIC ISSUES" description: "" url: "https://wimlaw.com/publications/newsletters/december-2013/use-of-payroll-cards-raising-legal-and-strategic-issues" date: "2026-06-13T12:56:22+00:00" language: "en-US" --- # USE OF PAYROLL CARDS RAISING LEGAL AND STRATEGIC ISSUES Written on May 16, 2016. Many employers have found the use of payroll cards to be extremely advantageous, not only to the employer, but to employees as well. Employers can save around $50.00 per employee per year, due to eliminating the need to physically provide a paycheck, reducing or eliminating bank service fees, and reducing paycheck fraud. Similarly, many employees do not have a bank account and thus no access to a direct-deposit program. During this past summer, numerous legal issues were exposed in litigation against a McDonald's franchisee claiming that McDonald's restaurants forced employees to receive their wages through payroll debit cards. The plaintiff alleged that the cards used carried associated fees that effectively reduced employees' pay, including charges of $1.50 for ATM withdrawals, $1.00 for balance inquiries, $.75 for online bill payments, and a $10.00 per month inactivity fee if money remains on the card longer than three months. The franchisee defendant thereafter announced that it would allow employees to choose whether to be paid by debit card, direct deposit, or paper check. Later, the Consumer Financial Protection Bureau (CFPB), a federal consumer regulator, announced that employers cannot require workers to receive their paychecks on debit cards. The CFPB said that employers must provide other options as to how employees receive their wages. Holders of the payroll cards are also entitled to disclosures of any fees and access to their account history, the CFPB said. Many employers have already responded to these issues by automatically enrolling workers in a payroll card program, but allowing them to sign up for other options, such as direct deposit. - [](https://x.com/intent/post?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Fdecember-2013%2Fuse-of-payroll-cards-raising-legal-and-strategic-issues.md&text=) - [](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Fdecember-2013%2Fuse-of-payroll-cards-raising-legal-and-strategic-issues.md) - [](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwimlaw.com%2Fpublications%2Fnewsletters%2Fdecember-2013%2Fuse-of-payroll-cards-raising-legal-and-strategic-issues.md) - [](mailto:?subject=USE%20OF%20PAYROLL%20CARDS%20RAISING%20LEGAL%20AND%20STRATEGIC%20ISSUES) ## Related Content ## Get Email Updates Receive newsletters and alerts directly in your email inbox. Sign up below. ## Recent Content [ December 2013 ](https://wimlaw.com/index.php?option=com_content&view=category&id=126) [ ![ai, human reach out](https://wimlaw.com/media/yootheme/cache/f1/igor-omilaev-FHgWFzDDAOs-unsplash-f12346e8.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53)### [FCRA Litigation Challenges Employers’ Use of AI Hiring Platforms](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) A January 20, 2026, class action filed against Eightfold AI, Inc. in California is sending shockwaves through the employer and AI community… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1582:fcra-litigation-challenges-employers-ai-hiring&catid=53) [ ![danger sign, skull](https://wimlaw.com/media/yootheme/cache/01/mikael-seegen-jX6WXNkvsPs-unsplash-01c1ebef.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53)### [The Dangers of Employers Using AI Research Tools as to Discovery Requests from Plaintiffs](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) A second “bombshell” affecting HR pertaining to AI is a federal court ruling in New York, that a defendant’s use of AI in researching and p… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1584:ai-research-discovery-requests-dangers&catid=53) [ ![CHAT GPT](https://wimlaw.com/media/yootheme/cache/64/emiliano-vittoriosi-fvxNerA8uk0-unsplash-64a16be4.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53)### [Two Subsequent Cases Protect Defendant’s Use of AI as Subject to Work-product Protection](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) Soon after the deciding of the above-discussed case on February 17, 2026, in U.S. v. Heppner, a criminal case in the District Court for the… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1585:ai-employer-protection&catid=53) [ ![avoid, wave away](https://wimlaw.com/media/yootheme/cache/6f/priscilla-du-preez-NQTphr4Pr60-unsplash-6fb4df83.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53)### [Is There Anything an Employer Can Do to Avoid Waiving Privileges in Using AI Research Tools?](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) There are no easy answers to the above question, but some general observations will nevertheless be made. First, the New York district cou… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1586:employer-avoid-waiving-privileges-ai-research&catid=53) [ ![ai visualization](https://wimlaw.com/media/yootheme/cache/45/milad-fakurian-5yWtM3M3JKM-unsplash-45306e6d.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53)### [Suggestions on Use of AI](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53) [Employment Law Newsletter: A Monthly Report On Labor Law Issues](https://wimlaw.com/index.php?option=com_content&view=category&id=53) Perhaps the starting point is to look at the type of AI platforms generally available. At a recent conference about AI use for HR, speaker… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1587:ai-legal-recommendations&catid=53) [ ![june 2026 legal immigration webinar promo graphic](https://wimlaw.com/media/yootheme/cache/45/june-2026-webinar-immigration-453d45bc.jpg) ](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221)### [Worksite Enforcement and TPS and Parole Status Update](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221) [Webinars: Employment Law "Hot Topics"](https://wimlaw.com/index.php?option=com_content&view=category&id=221) The webinar covers how to deal with a worksite enforcement action and various types of immigration enforcement activities. The webinar also… [Read more](https://wimlaw.com/index.php?option=com_content&view=article&id=1583:worksite-enforcement-tps-parole&catid=221) ### Additional Legal Resources [### Newsletter Explore ](https://wimlaw.com/publications/newsletters) [### Books Explore ](https://wimlaw.com/publications/books) [### Alerts Explore ](https://wimlaw.com/alerts) [### Articles Explore ](https://wimlaw.com/articles) [### Audits Explore ](https://wimlaw.com/audits) [### Events Explore ](https://wimlaw.com/events) ## Schema ```json { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://wimlaw.com" }, { "@type": "ListItem", "position": 2, "name": "Publications", "item": "https://wimlaw.com/publications" }, { "@type": "ListItem", "position": 3, "name": "Newsletters", "item": "https://wimlaw.com/publications/newsletters" }, { "@type": "ListItem", "position": 4, "name": "December 2013", "item": "https://wimlaw.com/publications/newsletters/december-2013" }, { "@type": "ListItem", "position": 5, "name": "USE OF PAYROLL CARDS RAISING LEGAL AND STRATEGIC ISSUES", "item": "https://wimlaw.com/publications/newsletters/december-2013/use-of-payroll-cards-raising-legal-and-strategic-issues" } ] } ```