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Pre-paid debt cards could violate minimum wage law

Most workers are used to being paid for their jobs through a pay check. In some cases, employees may have their wages directly deposited into their bank accounts while others prefer to cash or deposit their checks themselves. On the other hand, employers may experiment with new types of payment methods, but in some cases, those methods could potentially violate minimum wage law.

Colorado residents may be interested in a lawsuit currently taking place in another state. Reports indicated that an employee at a Dave & Busters restaurant filed the wage claim after the company started issuing pre-paid debit cards for the first and last month's pay. It was reported that a fee was associated with withdrawing money from the cards and that the entirety of the balance could not be withdrawn. 

Many companies may consider these cards because it saves them money due to the reduction of fees coming from printing pay checks. However, the fees associated with withdrawing the money from the cards could lead the workers to see some of their earned wages being lost. As a result, some individuals may come to a point where their income dips below the minimum wage line. The employee who filed the claim against the company is hoping that the company will stop using the cards.

There are many small aspects, like fees, that some individuals may overlook when it comes to withdrawing their pay. However, as this case shows, these fees could considerably impact a person's income and violate minimum wage law. If Colorado residents have faced similar situations or other instances in which they have not been paid at least minimum wage, they may wish to look into filing legal claims of their own.

Source:, "Employee files lawsuit against Dave & Buster's payroll debit card policy", Sept. 2, 2016

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