With more men and women joining the workforce without checking accounts, many employers in the Johnson City, Tennessee area have found the need to start paying their employees with debit cards. However, this method of payment poses a couple of issues for employers. Here are some things you need to be aware of before you begin to pay your employees with debit cards.
The Problems
One thing to keep in mind is that you cannot require your employees to have a checking account or to receive their paycheck in the form of a debit card. You also have to disclose the fees associated with the account, the account history, and their rights.
The most common issue of these two is the latter – the fees associated with using debit cards. If fees on their card cause their hourly wage to drop below minimum wage, you are in violation of the Fair Labor Standards Act (FSLA). This can also come into play when you withhold funds from their paycheck for failure to return company equipment, their uniform, their cell phone, etc. The FSLA requires that all employees be paid at least minimum wage. So be careful! Make sure you do not drop the total amount of their pay check divided by hours worked below the current minimum wage.
Contact Us
If you have any questions about this or any of your business insurance needs, contact our Tri-Cities, Tennessee insurance office today at (423) 292-4142. You can also email us at help@veritasrm.com. We will be glad to answer any questions you have and help you make sure you have the insurance coverage you need.
Let's Get Social!
Understanding Bodily Injury Coverage in Roofers Insurance
Being a roofing contractor is rewarding yet demanding. Roofers face risks, so having a roofer’s insurance is crucial. This insurance covers various liabilities and risks, making it essential for
Keeping it Fresh: Maintaining Your Refrigerator Door Seals
Your refrigerator’s gasket is like a trusty sidekick for food freshness, playing a pivotal role in keeping the cold air in and the warm air out. This essential component