Consumer Banking and Payments Law: 4.7.4.2 State Labor Law May Limit Charges When Employees Cash Pay Checks at Employer’s Bank
In California, employers are required to pay their workers with checks which can be cashed at the drawee bank without paying a fee.418 This statutory requirement has led to lawsuits by both employers against banks that charge a check-cashing fee and by employees against their employers. Employers have alleged that their drawee banks have, by charging a fee, forced them to violate California law. Employees also have alleged that their employer violated this statute when the employer’s bank charged the employee a fee.