Bank May Use Payroll Deductions To Process Charitable Contributions

Bank May Use Payroll Deductions To Process Charitable Contributions

Bank May Use Payroll Deductions To Process Charitable Contributions

Court says program meets statutory requirement of accruing to the benefit of the employees
A putative class action suit brought by a former employee of Wells Fargo Bank in Iowa, who claimed that the bank lacked statutory authority to use payroll deductions to process voluntary charitable contributions from employees, has been dismissed by a federal District Court. The Court said that the deductions were permitted as a “lawful purpose accruing to the benefit of the employee[s].” ( Ferezy v. Wells Fargo Bank, S.D. IA, No. 4:09-cv-00455, 12/21/10 .)

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