A former Dave & Buster’s employee has sued the bar and entertainment chain claiming its policy of paying employees their first and final paychecks on payroll debit cards violates the federal Fair Labor Standards Act. The plaintiff claimed she was not paid minimum wages because when she used the card, she incurred fees.
The plaintiff worked at a Dave & Buster’s location in Oregon. She is suing on behalf of herself and all other employees who were paid with debit cards since 2010. Damages could potentially be over $1 million dollars.
The use of prepaid debit cards by employers has been on the rise. Companies save money by not paying administrative fees associated with payroll checks. While the practice itself is not illegal, failing to pay an employee all compensation earned is. Incurring fees or not being able to withdraw all income earned could be a violation of federal and state minimum wage and overtime law.
If you have been paid with a debit card and did not receive your full compensation because you were charged to use it, you may be the victim of wage theft. The attorneys in Sommers Schwartz Employment Group can answer any questions you may have – contact us today!