News

“Pay Cards” No Longer Mandatory

“Pay Cards” No Longer Mandatory

Photo: Newsradio WTAX

Employers in Illinois can no longer force workers to accept payment in the form of payroll cards.

Under the newly signed law, employers will still have to offer direct deposit or paper checks, and can’t make the payroll card system a condition of employment. Illinois Attorney General Lisa Madigan says an investigation by her office found these cards charged fees for making transactions or checking the balance.

“They diminished people’s wages,” Madigan said, “and what the most significant aspect of this bill is, is the fact that you shouldn’t have to pay to get your pay.”

Madigan says there can be some benefit to payroll cards for those without a bank account. Under the law, an employee can choose to have their wages put on a payroll card, but only after the employer discloses all the possible fees.

Some businesses have begun favoring the cards as a cost cutting tool, since issuing them instead of a paper check can save businesses a few dollars per employee every pay period.

Recent Headlines

19 hours ago in Entertainment

Bill Murray tosses fans’ phones off rooftop

billmurray

The "Ghostbusters" star was unwinding at rooftop restaurant in California on Thursday when he spotted two starstruck fans trying to snap his photo.

20 hours ago in Entertainment

OPENING WEEKEND: ‘Deadpool,’ ‘Zoolander 2’ to battle at the box office

15-overlay-6

Here's a look at some of the films set to open this weekend.

20 hours ago in Entertainment, National

Roses and roaches: Cold-hearted Valentine’s Day ideas

valentines

With the coldest air in more than a decade forecast to grip the United States this Valentine's Day weekend, the holiday dedicated to love is flashing its frigid side.