Senate Clashes Over Debit Card Pay Bill

There was a heated debate Thursday in the state Senate. At issue, a bill that would give employers the option of paying workers with pre-paid debit cards.

The bill says if a company decides they want to pay their employees by debit card they can do so, unless an employee tells them they would rather have a paycheck or direct deposit. Republican bill sponsor Burt Jones, R-Jackson, says companies need more options. And he says it will help low-wage workers without bank accounts.

“Currently, when they get a check they have to go somewhere to cash that check, and they get hit with astronomical fees,” Jones says.

But Senate Democrats argued employees should be asked to choose how they want to get paid, rather than opting out of a debit card. Otherwise, Sen. Steve Henson, R-Tucker, says they could get taken advantage of by financial institutions that charge high fees for things like using ATMs, balance inquiries and using pin numbers.

“These are people that are often victimized by banking institutions, some businesses and others. As legislators I think we need to look out and make sure they know what they’re getting into,” Henson says.

But in the end, the Senate approved the bill 43 to 8.