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View Diary: Chase has taken their next move, into your paycheck (265 comments)

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  •  This idea originated at ALEC (24+ / 0-)

    Thanks for posting this - it's important for people to realize that it is not only "them" that this is happening to - with ALEC state legislation it could be anyone/everyone.

    McDonald's use to be a member of ALEC.
    This is a private implementation similar to ALEC legislation - there is legislation that has been introduced in multiple  states to implement debit card payroll payments for all jobs, all persons.

    The ALEC Electronic Pay Choice Act
    Starts out by saying that an employer may pay employees in
       lawful money of the United States
        by a check payable in lawful money of the United States
        by automated transfer in lawful money of the United States
        or by credit to a prepaid debit or credit card.

    The use of the word OR - means any of the above and not necessarily a choice of the above.

    However, an employer that elects not to pay wages or salaries in accordance with clause (i) or (ii)
    (Employer makes the choice - not the employee.  (i) and (ii) Meaning hard cash or hard check)

    shall be permitted to pay wages or salaries by credit to a prepaid debit card or card account in accordance with clause (iv),
    (Meaning direct deposit to a debit card)

    even though such employee has not affirmatively consented thereto,

    Under this legislation - for employees that do not have checking accounts - there is no option for a payroll "check"
    if the employee fails to designate an account at a financial institution in accordance with clause (iii)
    (which means the employee does not give the employer a routing number for direct deposit)

    and the employer arranges for such card or card account to be issued through a network system
    (presumably using an ALEC corporate sector member)

    through which the employee shall have the ability to make at least one free withdrawal or transfer per pay period, which withdrawal may be for any sum in such card or card account as the employee may elect, using such card or card account at financial institutions participating in such network system

    AND
    it is going to expand - beyond paychecks.

    The state of MN has set up tax refunds and real estate refunds for 2014 and beyond -  to be issued on debit cards only - I have a hunch there is an ALEC legislator behind that also.

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