PHOENIX, Ariz. -- Arizona lawmakers are considering a bill that would allow day-labor companies to provide check-cashing services to their workers if they charge $2 or less and provide information about alternative payment instruments.
According to a report in the Phoenix Business Journal, Republican state Sen. Barbara Leff is sponsoring the legislation, which has the backing of Tacoma, Wash.-based Labor Ready Inc.
Leff and other advocates say SB1289 offers a convenient solution to temporary workers and allows them to cash their daily paychecks. The $2 charge is also less than what private check-cashing outlets charge.
The legislation is in response to a 2000 state law that barred temporary placement firms such as Labor Reay from charging check-cashing fees to their employees. In response to the 2000 law, Labor Ready provided vouchers to its workers that could be used to obtain cash from ATMs with $1 to $2 charges.
(See related story Pushing the (pay) envelope)
In 2002, then-state Attorney General Janet Napolitano filed suit against Labor Ready, alleging the company was still charging its workers check-cashing fees -- albeit via ATMs.
The company countered that the service was voluntary, but shut down the ATMs anyway.
Critics of Leff's bill include agencies advocating on behalf of the poor and homeless. Those groups make up the bulk of day workers.
The Arizona Attorney General's Office also opposes the measure, with its suit against Labor Ready still pending. Democratic State Sen. Marsha Arzberger opposes the bill as well, saying any changes should come after the state case against Labor Ready is resolved.
The bill narrowly passed the Senate Commerce Committee, which Leff chairs, by a 5-4 party line vote. It faces a similar tight and partisan vote in the full State Senate.
