McDonald's Employee Debit Card Class Action Meritless, Says Franchisee

The lawsuit against Pennsylvanian McDonald's franchises over the company's use of free-carrying debit cards to pay employees is bogus, according to company lawyers. Debit cards are legal and workers agreed to the system upon being hired, they say.

It also argues that other employees lack the grounds to sue.

The suit was filed in June by Natalie Gunshannon who accused the company of violating minimum wage laws by only providing debit cards that charge fees, effectively decreasing workers' pay. At the time, the franchised McDonald's agreed to begin offering alternative pay methods that bore no fees, such as checks, direct deposit and payroll cards. Despite this, the lawsuit, filed in the Luzerne County Court of Common Pleas, continued.

Albert and Carol Mueller, the owners of the 16 Pennsylvania restaurants, insist that the cards are both the "functional equivalent of cash" and that employees joining the company consented to their use. Responding to the class action, which garnered widespread publicity and even prompted a federal investigation, attorneys for the company have alleged that Gunshannon lacks the proper standing to lead the suit as she never actually received or used the debit cards, and therefore never incurred the fees on which the lawsuit is based. They also argue that at the time of her hiring, Gunshannon was provided an explanation of the payroll system and did not raise any concerns. The cards can be used to withdraw the complete balance from a bank without incurring fees, the attorneys added.

Company policy is to issue the first month's pay by check before issuing a card to which future wages can be credited. While Gunshannon received a check, the company never placed any of her payments on her card."Ms. Gunshannon received all wages she earned in the form of a check, and therefore, she could not have incurred fees through the card," the company said in court papers. It also argues that other employees - even those who activated and used their cards - lack the grounds to sue, as they were not required to incur fees if they withdrew funds only through local banks.

Gunshannon&'s lawyer, also representing other McDonald's employees, has already responded, and accused the company of failing to clarify the debit card's terms at the time of hiring.

"Once Ms. Gunshannon discovered that the J.P. Morgan Chase payroll card was loaded with fees, she voiced her concern about this practice and requested direct deposit. Her request was outright refused," said a written statement. The statement added that Gunshannon's objection was to the "mandate" that she be paid with a card carrying hidden fees.

And so the case continues.