Paying Wages on Stored Value Cards
These days many employers like to pay wages on stored value cards. There are many reasons that some employers like this payment method, but if getting paid on a card means that an employee must pay a fee to get the cash, the practice is problematic under Massachusetts law. This is so for several reasons.
- The Massachusetts Wage Act prohibits unlawful setoffs and deductions from wages. If an employee can only get his wages by paying a fee, that is the equivalent of an invalid setoff or deduction. Section 27.05