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Pennsylvania State Senate
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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session


Posted: August 10, 2015 02:26 PM
From: Senator Donald C. White
To: All Senate members
Subject: Payroll Debit Cards
In the near future, I plan to introduce legislation amending the Wage Payment and Collection Law allowing employers the option to pay an employees' wages in the form of a debit card. A recent court order has deemed debit cards to not be "lawful money" for the purpose of paying wages. This legislation would give the employee the option to be paid by check, electronic fund transfer or a payroll card. In addition, this bill provides for employee protections by limiting fees and increasing penalties for those employers found to be in violation of the law.

A growing trend among employers is to distribute an employee's wages via debit cards, instead of by check or electronic funds transfer. Pre-paid cards have become an option of choice by many, especially those with little or no access to traditional banking. Debit cards allow the employees to avoid the costs of check cashing and money orders. Cashing paychecks and other checks takes time and money that many lower income individuals don't have.

My legislation establishes requirements and parameters for employers to use payroll debit cards in the payment of employee wages and also ensures increased protection for workers. Required guidelines will not only ensure that employees have access to the full amount of their wages, but are provided with unlimited, no-cost access to their accounts.

If you have any questions regarding this legislation, please contact Carlton Logue of my staff at 78724 or clogue@pasen.gov.

Introduced as SB1265