CA Law: Cashing Your Paycheck Without Fees
California labor laws protect employees in more ways than one. A law that employers sometimes fail to comply with, California Labor Code Section 212, states that your employer must provide a way for you to cash your paycheck without paying fees at the bank.
The employer must either: (1) pay the bank fee for you; (2) provide in-house check cashing services; or (3) provide information on the paycheck itself on where in California your checks can be cashed without a fee. If your employer does not do any of these after issuing you a paper paycheck, they are in violation of California labor law.
This applies even if you are not a customer of a bank and don’t have a bank account. According to a 2017 FDIC survey, 6.5 percent of households in the US, or around 8.4 million households, go without a bank account. This means that hundreds of thousands of workers in California could be paying fees to cash their paychecks when they don’t have to.
Banks That Charge Check Cashing Fees (Nov. 2019)
- Chase – $8
- Union Bank – $10
- Bank of America – $8
- US Bank – $7
- Rabobank – $6
- Wells Fargo – $7.50
We’re sure there’s more! Let us know if you know of other banks that charge fees to cash paychecks, or if the rates have changed.
How To Get Your Fees Back
Over time, paying bank fees to cash each paycheck can really add up! To get reimbursed for your past paid bank fees and to stop paying them in the future, contact PARRIS employment lawyers for help. Start your free case consultation by calling (661) 485-2072. You pay no fees until we win your case.