(Long Island, NY) Attorney General Eric T. Schneiderman wrote an op-ed in amNewYork calling on the state Department of Labor to protect workers who use payroll cards should the legislature fail to act. Highlights from the op-ed are below.
ON THE NEED FOR PAYROLL CARD PROTECTIONS: Imagine you are 17 and on your first job, or that you don’t speak English, or don’t know how to use a computer. On payday, your employer hands you something that looks like a credit card and tells you it’s your pay. When you use it, you’re surprised by fees for withdrawals, purchases and even checking your balance, as my office reported last year. In some programs, the average per-employee fees ran as high as $20 per month
ON CURRENT PENDING LEGISLATION: My Payroll Card Act, which has bipartisan support and is sponsored by Republican Sen. Patrick Gallivan and Democratic Assemb. Joe Morelle, would ensure workers are clearly informed about card fees, require informed consent to use the cards, prevent excessive fees and allow workers to withdraw wages free of charge.
ON THE NEED FOR ACTION TO PROTECT WORKERS NOW: While some companies have improved the way they use payroll cards, the legislature should protect workers by passing the bill before this session ends next month. If it fails to act, the Department of Labor can require full disclosure of payroll card terms, informed consent on the part of workers before payroll cards are used, limitations on fees for common transactions, and cost-free access to wages via a network of ATMs.
The full op-ed can be read here.
