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She said she was told to sign up for a payroll card.
Instead, Ms. Gunshannon said, she was forced to use a payroll card issued by JPMorgan Chase.
Under New York law, employees must give their explicit consent before companies can credit funds to a payroll card.
Employees say they are often automatically enrolled in the payroll card programs and confronted with a pile of paperwork if they want to opt out.
A Victoria's Secret employee, Bintou Kamara, for example, said it cost her $1.50 just to transfer money from her Citi payroll card to her checking account.
Saying she was forced to use a payroll card issued by JPMorgan, Ms. Gunshannon quit her job and sued the franchise owners.
Similar(41)
Prepaid cards--available at many local stores--and payroll cards that employers can offer in lieu of paper checks provide significant time and money savings for our families, and help us develop long-term prosperity in our neighborhoods.
It is unclear how many employers offer payroll cards.
The payroll cards will not include lines of credit.
And even more businesses specialize in payroll cards.
Card issuers and employers note that payroll cards are a valuable tool for low-wage workers.
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