Monday, June 13, 2011

Electronic Paycard Protection Act Introduced in House

Earlier this month Rep. Joe Baca (D-CA) introduced the Electronic Paycard Protection Act (H.R. 2125) which would mandate certain disclosures to and options for employees who receive their pay electronically through payroll cards. The bill, if passed, would add a section to the Fair Labor Standards Act (FLSA) that outlines the new conditions imposed on employers that use electronic payroll cards. The bill would also seek to:

  • Allow employees to access the full amount of their wages at least once per pay period;
  • Provide employees with a mechanism to check their balance free of charge;
  • Provide employees with a written explanation of all the terms and conditions associated with the use of an electronic payroll card, including any fees associated with such a card. Employers would also be required to make these disclosures in any other manner typically used by the employer to communicate to employees;
  • Give employees the option to receive either a paper paycheck or electronic paycheck deposit instead of a paycard;
  • Disallow an electronic paycard payment of an employee’s final payment or any severance payment to an employee whose employment has been discontinued;
  • Prevent an employer from firing or failing to hire employees or applicants for refusing to use electronic paycards as their primary means of receiving wages; and
  • Ensure that any funds made available by the paycard may not expire.
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