On Sunday, April 13, The Chicago Tribune published a long article about a new trend that is taking money out of working people’s pockets, especially those who can least afford it. Rather than print paychecks, companies are issuing their employees payroll bank cards. Employers do this to save the cost of printing, which sounds like efficiency. The problem is that the employee now is paying fees that range from $1.00 to $13.00. Too often, the people holding these bad cards are low wage workers. If the employee lets his balance run below $20, she has to wait to access funds because ATM machines only dispense $20 bills. Another employee noted that the card only has his employer’s name on it, so it cannot be used as a debit card. Does this sound like a convenience for the employee? No. But it sounds like a great deal for the employer. What else should we expect in the Second Gilded Age?
Posted: April 16, 2014