Wells Fargo & Co. bank has settled a lawsuit that challenged the $5 fee charged by the bank for
non-accountholders who cashed payroll checks drawn on a Wells Fargo
account. The lawsuit, filed on behalf of California employers, claimed
that the fee put businesses in jeopardy of violating a California Labor Code
provision requiring employers to give employees a means to cash paychecks
with no fee. As part of the settlement, the bank will offer free
direct-deposit payroll services for small business customers for one year
and will allow employees of those businesses to open free checking
accounts. Earlier this year, Bank of America settled a similar
lawsuit.
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