Categories:  'Economic Inequality'  

The Fight for Fair Pay Goes Beyond the Salary

" Gov. Andrew Cuomo recently earned well-deserved praise for his efforts to secure a $15-an-hour minimum wage for fast-food workers in New York. No another [...]

Gov. Andrew Cuomo recently earned well-deserved praise for his efforts to secure a $15-an-hour minimum wage for fast-food workers in New York. No another fight for fairness in pay is brewing in New York that also needs his support.

The issue is payroll cards – prepaid debit cards issued to employees and refilled each payday with the employees’ wages in lieu of paper checks or direct deposits into a worker’s bank account. According to data from Visa cited in a report last year by New York’s attorney general, Eric Schneiderman, payroll cards can save a corporation up to 65 percent in payroll processing costs. The cards can also save money for workers who do not have bank accounts and might otherwise rely on costly check-cashing services…

The problem is that the cards, used mostly by low-wage employers, are often laden with fees that take a big bite out of worker pay through A.T.M. fees on withdrawals, transfers and account-balance inquiries, replacement fees for lost cards, inactivity fees for infrequently used cards and fees imposed by retailers for use of the cards. In some programs examined in the Schneiderman report, employees typically lost up to $20 a month in fees.

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Articles

Publication Date: 06/11/2016
Source: American Progress
Author: Kaitlin Holmes, Jocelyn Frye, Sarah Jane Glynn, and Jessica Quinter
Publication Date: 14/04/2015
Source: Time
Author: Charlotte Alter
Publication Date: 12/05/2015
Source: Harvard Magazine
Author: John S. Rosenberg