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

in Entertainment

‘Siri, can you give me a hint?’ Apple confirms September event

16-overlay14

The rumors are true: Apple will host an event Sept. 9 in San Francisco.

in Entertainment

Netflix drug drama ‘Narcos’ blurs line between cartels, agents

11-overlay7

Not all cops are good guys and not all drug suppliers are obvious villains in the dark drug drama "Narcos," a bilingual examination of the history of cocaine smuggling in America and its most menacing supplier.

in Entertainment

The secret to Rob Lowe’s ageless face

17-overlay12

The 51-year-old actor will star in a new series this fall, "The Grinder," and still looks as good as ever.