The Paycard Portal provides employers with valuable resources relating to permissible methods of wage payment and focuses on the legal requirements governing paycards. The Paycard Portal provides employers with important information on how to integrate paycards into their wage payment programs, and keeps them up to date on this rapidly developing area of the law. Use the drop down box below to view individual federal and state statutes and regulations.
Continue on for additional discussion of issues regarding paycards.
The material provided on the Paycard Portal is for informational purposes only and is not to be considered tax, legal, or financial advice, analysis, or opinion. Readers are reminded that they are solely responsible for complying with federal and state employment laws and are encouraged to seek competent legal authority before taking action based on this material.
Delaware Administrative Code Title 19, section 1324
Effective June 14, 2004
These regulations authorize employers to compensate employees using payroll debit cards that are the functional equivalent of cash or a check. The regulations also define "functional equivalent" and set forth the requirements that must be met when using payroll debit cards as a form of wage payment.
The District of Columbia's statutes and regulations do not expressly address the payment of wages using paycards.- 11/04/2015
Florida Statutes, § 532.01
Paycard provisions added by HB 569 (2009 Chapter 140)
Effective July 1, 2009
Section 532.01 of the Florida Statutes identifies payroll debit cards as a permissible method of wage payment if certain conditions are met.
Official Code of Georgia Ann. § 34-7-2
Paycard provisions added by SB 88 (2015 Act No. 85)
Effective May 5, 2015
Section 34-7-2 authorizes the payment of wages to a payroll card account subject to specified requirements. Among other things, the statute requires that certain disclosures and forms be provided to employees at specified times when payroll card accounts are used. It also requires that employees be able to opt out of the payroll card program and, at the employee's election, be paid by check or direct deposit.
Hawaii Revised Statutes, § 388-5.7
Paycard provisions added by HB 1814 (2014 Act 208)
Effective September 1, 2014
Section 388-5.7 authorizes the payment of wages using a pay card with the employee's voluntary authorization and provided certain conditions are met. Among other things, these conditions address written disclosures, alternative payment options, access to account information and cash wages without cost, fee prohibitions, and timely payment of wages to the payroll card account. Section 388-1 was amended to include definitions of "pay card," "pay card account," and "pay card fee schedule."
The Idaho statutes and regulations do not expressly address the payment of wages using paycards.- 11/04/2015
Illinois Compiled Statutes, 820 ILCS § 115/2, 115/4, 115/14.5;
Paycard provisions added by HB 5622 (2015 Public Act 098-0862)
Effective January 1, 2015
These provisions, set forth in the Illinois Wage Payment and Collection Act, authorize the payment of wages and final compensation by payroll card and define "payroll card" and "payroll card account." Section 14.5 specifies the conditions under which payroll cards may be used. Among other things, section 14.5 requires that payroll cards be offered on a voluntary basis, that another method(s) of payment be offered in compliance with the Act, and that certain disclosures be made and consent obtained before wages are paid by electronic fund transfer to a payroll card account. Section 14.5 also addresses methods of accessing full net wages and account information without cost, prohibits specified fees and the use of payroll cards linked to credit, and identifies post-employment responsibilities.
56 Ill. Admin. Code sections 300.450, 300.600
Effective August 22, 2014
Section 300.600 of Title 56 of the Illinois Administrative Code establishes the standards for voluntary acceptance of direct deposit and payroll cards. Section 300.450 defines relevant terms.
The Indiana statutes and regulations do not expressly address the payment of wages using paycards.- 11/04/2015
Wage FAQ No. 19
The Iowa statutes and regulations do not expressly address the payment of wages using paycards. However, the Iowa Division of Labor has issued an FAQ recognizing the use of debit cards for the payment of wages if certain conditions are met.