Franchise News

McDonald's in PA Agrees to Stop Paying Employees with Debit Card

Jul 01, 2013 02:41 PM EDT | By Staff Reporter

Employees of a McDonald's franchise in Pennsylvania will no longer have to accept fee-carrying payroll debit cards; after an employee sued the company saying it was unfair employees had to be charged to receive their salaries.

Franchise owner Albert and Carol Mueller Ltd. announced today that it will begin offering direct deposits or paper checks to their employees. The company owns 16 McDonald's restaurants, according to the Associated Press.

Former employee Natalie Gunshannon alleges she was charged $1.50 to withdraw cash. Her lawsuit has focused attention on the practice of paying low-wage employees via debit cards that can be laden with fees.

Mueller-Curran says the debit card used by franchise owners Albert and Carol Mueller includes free withdrawals. She says the company has always tried to treat its employees fairly.

Last week, the U.S. Attorney's Office for the Middle District of Pennsylvania announced it had asked the U.S. Department of Labor to examine the practice.

"An important part of our value system has always been to provide our employees with convenient, free, and immediate access to their pay," Christina Mueller-Curran, spokeswoman for Albert and Carol Mueller Ltd., said in the emailed statement. "By expanding the options our employees have to receive their wages they will be better able to meet their individual financial needs and preferences."

Mueller-Curran says the debit card used by franchise owners Albert and Carol Mueller includes free withdrawals. She says the company has always tried to treat its employees fairly.

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