PRINTER'S NO. 1996
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1762
Session of
2021
INTRODUCED BY FLOOD, HENNESSEY AND BERNSTINE, AUGUST 5, 2021
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, AUGUST 5, 2021
AN ACT
Amending the act of December 19, 1975 (P.L.604, No.173),
entitled "An act to facilitate the use of electronic funds
transfer systems by providing that credits to accounts in
financial institutions designated by recipients shall satisfy
legal requirements for payments by cash or checks," further
providing for payroll card accounts.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2.1(3), (4) and (9) of the act of
December 19, 1975 (P.L.604, No.173), entitled "An act to
facilitate the use of electronic funds transfer systems by
providing that credits to accounts in financial institutions
designated by recipients shall satisfy legal requirements for
payments by cash or checks," are amended and the section is
amended by adding a paragraph to read:
Section 2.1. Payroll card accounts.
In addition to any other requirements under this act, all of
the following provisions apply when payment of wages, salaries,
commissions or other compensation is made through transfers to a
payroll card account:
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[(3) No employer may make the payment of wages, salary,
commissions or other compensation by means of a payroll card
account a condition of employment or a condition for the
receipt of any benefit or other form of remuneration for any
employee.]
(4) [Prior to obtaining an employee's authorization,
the] The employer shall provide the employee with clear and
conspicuous notice, in writing or electronically, of all of
the following:
(i) All of the employee's wage payment options.
(ii) The terms and conditions of the payroll card
account option, including the fees that may be deducted
from the employee's payroll card account by the card
issuer.
(iii) A notice that third parties may assess fees in
addition to the fees assessed by the card issuer.
(iv) The methods available to the employee for
accessing wages without fees.
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(9) The employer shall honor an employee's written or
electronic request to change the employee's method of
receiving wages from a payroll card account to direct deposit
[or negotiable check]. The change shall take effect as soon
as practicable, but no later than the first payday after 14
days from receipt by the employer of the employee's request
and any information necessary to implement the change.
(9.1) An employer may pay all wages due to an employee
by deposit on payday at a financial institution of the
employee's choice or, if the employee does not designate a
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financial institution, to a payroll card account.
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Section 2. This act shall take effect in 60 days.
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