Cash Advance Processing Fee?

earlearl · July 2001

Employer wishes to charge a (10% for new hires and 20% for current employees) processing fee for cash advances.

These checks would be mailed via FedEx $25.00 weekday and $35.00 weekend. Processing fee and postage to be payroll deducted from employees paycheck.

Can anyone suggest if this is okay or where I can find an answer. I have looked and am unable to find this subject addressed. Am I overlooking it?

This co. is located in Tx.

Thanks.

Mike Maslanka · July 2001

in texas,there is the texas pay day act which requires written employee consent before any money can be taken out of a paycheck...it's in the texas labor code,section 50 or 51 or somewhere in there...call if you need anything further,214-659-4668...regards from texas,mike maslanka

System · July 2001

As long as you have a written payroll deduction authorization form signed by the EE on file, you should be fine.

Down_the_Middle · July 2001

Once I overcome the distaste of charging employees who need early paychex, I guess the best source would be your state statutes. I agree with others who suggest written authorizations. The concept troubles me since it mirrors the check cashing services who give you your money for a fee. Just a personal thing, I guess.

CuriousG · July 2001

>Once I overcome the distaste of charging employees who need early
>paychex, I guess the best source would be your state statutes. I
>agree with others who suggest written authorizations. The concept
>troubles me since it mirrors the check cashing services who give you
>your money for a fee. Just a personal thing, I guess.

I agree this seems like a distasteful practice. It really sounds like the employer does not want to issue advances, and just can not bring themself to say "No!" so they want to make it so expensive, and distasteful that employees will stop asking.

I say, bite the bullet, and establish a "no advances" policy.

Cash Advance Processing Fee?

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