McDonald’s Sued for Forcing Fee-Charging Payroll Card on Employees

A former employee at a Pennsylvania McDonald’s is suing the fast food franchise for requiring her to receive her wages through a payroll debit card that charged fees.

In a model that had been used by several major franchises in the U.S., including Taco Bell, Wendy’s and Wal-Mart, workers had become frustrated by the fees that charged the workers to withdraw their cash from the card, receive a paper statement, have their card replaced, or for 90 days of inactivity.

Natalie Gunshannon said McDonald’s refused to let her deposit directly into her checking account.

An employee at a Milwaukee McDonald’s told CNBC that he spent up to $50 a month on fees relating to his JP Morgan Chase payroll card.

AP reported that in New York, the Attorney General’s office is investigating companies using these cards as it sent letters to Wendy’s Co., Costco Wholesale Corp., Dollar Tree Inc., Chipotle Mexican Grill Inc., Home Depot, Inc., Darden Restaurants Inc. and Wal-Mart Stores Inc., requesting them to send documents related to the payroll card system used by each company.

Some companies that offer the card, offer it as a an option and not a requirement, but workers have said they were automatically enrolled into it, or if they wanted to opt out, they would have to deal with a pile of paperwork.

The McDonald’s where Gunshannon worked has since said it will provide more payment options for its employees, but Gunshannon is hoping to have her case certified as a class action lawsuit on behalf of herself and the employees who also had their wages distributed through the payroll card.

H/T Eater, ABC News + PicThx Eileen Norman