Approximately 200,000 workers get paid via debit cards and have long suffered from the fees that come along with them. From ATM withdrawal fees to charges for paper statements and even inactivity fees, these extra charges add up — and can be have a big impact on workers’ take-home pay.
Now, thanks to new rules released last week, employees can breathe a sigh of relief: starting in early 2017, employees will have the ability to make unlimited withdrawals at no charge from at least one ATM that’s located at a “reasonable travel distance” from their work or home.
From the New York Times:
The rules also prohibit a host of incremental fees, including charges for monthly maintenance, account inactivity, overdrafts, checking a card’s balance or contacting customer service.
Companies will have to offer their workers the option of being paid either by cash or check, if they prefer — employers will not be allowed to require that employees accept a payroll card. Federal regulations already prohibit such requirements, but worker advocates say the rule is routinely flouted.
This marks an important development for the retail and service workers who are, increasingly, finding themselves paid by payroll cards rather than checks.
