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.
Especially for Texas Employers: Electronic Fund Transfer of Wages
The Texas statutes and regulations do not expressly address the payment of wages using paycards. In its publication Especially for Texas Employers, the Texas Workforce Commission takes the position that wages can be paid using paycards if certain conditions are met. Among other things, the payment method must be approved by the employee in writing.
Utah Admin. Code R610-3-22
Effective June 22, 2009
Rule 610-3-22 authorizes the use of pay cards provided certain conditions are met. Among other things, the Rule addresses the ability to withdraw full wages on payday without cost and the conditions under which the required statement of deductions may be provided electronically.
Vermont Statutes, Title 21, §§ 342 and 343
Paycard provisions added by S. 58 (2009 Act. No. 115)
Effective May 21, 2010
Sections 342 and 343 of Title 21 of the Vermont Statutes authorize the payment of wages by credit to a payroll card account with the written consent of the employee and provided a variety of conditions are met. Among other things, these conditions relate to written disclosures, access to account information and cash wages without cost, prohibited fees, linkage to credit, and post-employment responsibilities.
Virginia Code § 40.1-29
Paycard provisions added by HB 472 (2004 Chapter 358)
Effective July 1, 2004
Section 40.1-29 of the Virginia Code permits the payment of wages using a prepaid debit card provided certain conditions are met. Among other things, these conditions relate to employee consent and required disclosures. The statute also identifies the circumstances under which paycards may be the default method of wage payment for employees hired after January 1, 2010 who do not designate an account for direct deposit.
Getting Paid: Common Questions
The Washington State statutes and regulations do not expressly address the payment of wages using paycards. In these commonly asked questions, the Washington State Department of Labor and Industries takes the position that a business may pay its employees using a prepaid payroll card. However, certain requirements must be met if there are fees for using the card.
West Virginia (PDF)
West Virginia Code § 21-5-3
HB 4032 (2008 Chapter 129)
Effective June 6, 2008
Section 21-5-3 of the West Virginia Code permits payment by deposit or electronic transfer of immediately available funds into an employee's payroll card account in a federally insured depository institution. The employee and employer must agree in writing to payment using a payroll card.
The Wisconsin statutes and regulations do not expressly address the payment of wages using paycards.- 11/09/2015
The Wyoming statutes and regulations do not expressly address the payment of wages using paycards.- 11/09/2015