The APA Visa 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. For individual federal and state statutes, use the box below to filter articles by federal or a specific state.
Continue on for additional discussion of issues regarding payroll cards.
The material provided on the APA Visa 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.
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.
Section 44-314 of the Kansas Statutes authorizes the payment of wages using payroll cards and sets forth the conditions under which employers may pay their employees' wages using direct deposit and payroll cards only.- 11/09/2015
The Kentucky statutes and regulations do not expressly address the payment of wages using paycards.- 11/09/2015
The Louisiana statutes and regulations do not expressly address the payment of wages using paycards.- 11/09/2015
HP 673 (Ch. 89 2005)
Effective June 29, 2005
Amends section 663 of Title 26 of the Maine Revised Statutes, and provides that employers may pay wages through a direct deposit system, automated teller machine (ATM) card, or other means of electronic transfer as long as the employee can: (1) make an initial withdrawal of the entire net pay without additional cost to the employee; or (2) choose another means of payment that involves no additional cost to the employee.
HB 751 (Ch. 573 2005)
Effective June 1, 2005
Amends section 3-502 of Maryland's Labor & Employment Law, and permits employers to pay wages via a debit card or card account if: (1) authorized by the employee; and (2) any fees applicable to the debit card or card account are disclosed to the employee in writing in at least 12 point font.
HB 476 (Chapter 476)
Effective October 1, 2014
Authorizes Frederick County to require county employees to elect, as a condition of employment, payment of wages by debit card or direct deposit. County employees who elect to receive wages by debit card must be provided a statement of wages and deductions.
The Massachusetts statutes and regulations do not expressly address the payment of wages using paycards.- 11/09/2015
Michigan Compiled Laws § 408.476
Section 408.476 of the Michigan Compiled Laws permits the use of payroll debit cards if certain conditions are met. Among other things, these conditions relate to employee consent, access to funds in the account without cost, access to account balance information without cost, and advance notice of any changes in terms and conditions of the payroll debit card. In addition, the statute prohibits linking payroll debit cards to any form of credit and authorizes the payment of wages using direct deposit and payroll debit cards only if certain requirements are satisfied.
Michigan Administrative Code, Rule 408.9035
Effective July 10, 2006, Rule 408.9035 of the Michigan Administrative Code sets for the conditions under which employers may use payroll debit cards to pay wages to their employees. Among other things, the rule addresses full access to wages, ownership of funds, required disclosures, and recordkeeping requirements for pooled accounts.