For managers, Darden says the cards eliminate two hours of paperwork each pay period. Employees incur no fees if they use their cards at more 
than 40,000 Allpoint ATMs nationwide and make purchases at places that accept Visa cards…They can be a convenient option for workers who don’t have checking accounts, a common situation for many restaurant or retail workers. The National Restaurant Association says 30 percent of industry workers don’t have traditional checking accounts…The Consumer Financial Protection Bureau recently issued a warning to employers that federal law requires other pay options besides debit cards.
In Orlando, companies that swear by the payroll cards include Darden Restaurants, Tony Roma’s, and Smokey Bones Bar & Fire Grill. Nationwide, the number of such cards is expected to more than double in five years to 10.8 million, according to business-research company Aite Group.
The cards save employers money and time. But workers who aren’t careful about where they use the cards can rack up fees, which has put payroll cards under scrutiny. New York’s attorney general is investigating more than 40 companies, including Darden, asking for information about fees and seeking proof that workers know they can receive their pay in other ways.
At Darden, which owns chains including Olive Garden and Red Lobster, new employees automatically are set up to receive debit cards, but they can make a phone call or go online to opt out. Now, 48 percent of Darden’s workers use the debit cards, and 50 percent have direct deposit. Only 2 percent receive traditional checks.
Consumer advocates frown on the automatic signup, saying employees should make the choice upfront. Darden said the cards are more convenient than paper checks, which used to be the automatic payment method.
