California labor laws offer a robust range of protections for workers, including the right to receive the full value of their paychecks. This is a guaranteed protection according to the California Labor Code Section 212, but unfortunately, some employers fail to comply with the law. What you can be sure of is that your employer must provide a way for you to cash your paycheck without incurring a fee at the bank.
Alternatively, you may be paid through a direct deposit or payroll debit card. This is another situation where employees may be charged a fee to withdraw their earnings, and as a result, be cheated out of their full paycheck amount.
The employment rights lawyers of Normandie are here to help if you are wondering “Is there anything I can do it I’m forced by the bank to pay a fee each time I cash my paycheck?” Please keep reading to learn about your rights and legal options as an employee in the state of California.
What are my Rights as an Employee under California Law?
According to the law, employers must make arrangements so that you can receive your entire paycheck without paying a fee at the bank. This can be done in various ways, such as:
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Include an additional amount in your check so that the fee is covered.
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Provide in-house services for check cashing
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Provide information to employees on where the check can be cashed without a fee (should be included with each paycheck).
If your employer is not taking such actions to cover your check cashing fees, they are in violation of California’s labor laws. This is an essential protection for millions of people in California, who are unable to establish a bank account in their name. In fact, around 4.5% of U.S. households do not have a bank account, according to a 2021 survey by the FDIC. That means millions of people may be charged a bank fee each time they cash their paycheck or withdraw money from a payroll card.
Some people may question whether such fees are a big deal, but we can assure you that the costs add up over time. On average, banks charge around $7 for check cashing fees, with some banks charging as much as $10. That means you could be losing hundreds of dollars every year, which you rightfully earned. Furthermore, making you responsible for bank fees on a paycheck is illegal under California laws, and you have the right to get those fees back from your employer.
Can I Get my Money Back for the Fees I Paid?
Yes, you can demand all the fees you were forced to pay in order to collect your wages. Taking legal action will also stop your employer from charging you such fees in the future. In addition, your employer may be fined by the California labor department if they fail to rectify the issue with your wages in a timely manner.
The law clearly states that employers cannot withhold, delay, or restrict an employee’s wages in any way, regardless of how they are paid. This includes charging a fee to collect their paycheck, which is a form of withholding payment. In California, employers may be fined $100 per day for the first violation, and $200 per day for subsequent violations. Employers are also forbidden from retaliating against you and withholding your check because of disagreements over what you are owed. This can result in additional penalties for the employer under the state’s wages and hours policies.
To learn about your rights and obtain back pay that you are owed by your employer for check cashing fees, please schedule a time to speak with one of our attorneys.
Can I be Forced to Receive Wages on a Payroll Debit Card?
This is an important question that comes up quite often during consultations with our clients. Most employers have done away with paper checks, which saves them time and money. Direct deposit is the most popular form of payment, but that generally requires the employee to have a bank account. As a result, employers may offer the option to receive payment on a debit card. Of course, the problem here is that you may be charged a fee each time you withdraw money from the card.
Payroll cards are an acceptable way to pay workers under California Labor Code section 213. However, employers cannot require employees to accept payment through this method. This goes back to the rules regarding check cashing fees, i.e., how employers cannot force an employee to pay a fee in order to collect their earnings. Using that logic, employers cannot force you to accept payment through a payroll debit card or any other method that charge you a fee to collect your wages. They can, however, rectify the situation by paying an additional amount to cover the withdrawal fees.
We know that you probably have additional questions and concerns about your wages if your employer is violating your right to receive the full amount of your paycheck. The good news is, California offers some of the strongest protections in the county when it comes to a worker’s wages. Essentially, you cannot be forced into any form of payment that restricts access to 100% of your wages. Whether you receive payment by check, direct deposit, or payroll card, your employer must find a way to provide you with ALL your earnings each and every pay period.
Class Action Lawsuit against Employers Charging Check Cashing Fees
In most of these cases, illegal paycheck fees affect more than one person, as the policy is in place for an entire business or company. Or, it may be that a smaller subset of workers are forced to pay check cashing fees, while others are not cheated out of the full value of their wages.
When multiple people are negatively impacted by the same entity, they may have the right to file a class action lawsuit. Filing as a group makes a powerful statement, as it increases the amount of available evidence for any labor law violation claim. In addition, it’s difficult for an employer to argue that this is a personal matter (employee retaliation, for example), when so many people have the same complaint.
However, it’s important to understand the process of starting or joining a class action before you decide to pursue this type of legal action. For a free consultation with an experienced class action lawyer, contact the offices of Normandie Law Firm.
Free Legal Services from a California Employment Attorney
Are you forced to pay check cashing fees on your paycheck or direct deposit transfer? Are you being hit with a fee each time you deduct your earnings from a payroll card? In that case, please reach out to our law firm as soon as possible.
Our lawyers offer free initial consultations, as well as free second opinions if you need advice on a pending payroll fee dispute with your employer. Whether you start a case with us or continue an existing lawsuit, there is no cost to you whatsoever unless we win your case. At that point, the cost of legal fees is included in your settlement check, so you won’t pay a single penny out of pocket for us to represent you. That’s a promise under the Zero Fee Guarantee, which we extend to all our clients from the very first meeting.
We can help you take action against an employer anywhere in the state of California, not just in the Los Angeles area. If you’re suffering due to a wages and hours violation by your employer, please know that we are here to assist you 24/7. Contact the labor law attorneys of Normandie and schedule a free case evaluation.
