Worker sues over Kmart's plastic paychecks
A worker is challenging Kmart’s practice of paying employees through debit cards.
Filed last week in California state court, Donte Winfrey Sr.’s suit contends that the company and Sears Holding Corp. are engaging in unfair business and employment practices by paying workers with plastic, Courthouse News reports.
The Riverside suit, which seeks class action status, says the payment methodology puts money in Kmart’s pocket by allowing the company to collect interest on wages that haven’t yet been withdrawn. However, it results in workers being paid less than they earned because of debit-card fees.
The suit seeks compensatory and punitive damages and a court order barring the practice.
See also:
ABAJournal.com: “Is a fee-laden debit card ‘lawful money’ for worker pay purposes? Class action seeks court ruling”
