Compliance & Regulations

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.

Compliance & Regulations Updates

National Updates

Kansas (PDF)

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

Kentucky (PDF)

Kentucky Revised Statute § 337.010
Payroll card provisions added by HB 378 (2017)
Effective June 29, 2017
Section 337.010 authorizes the payment of wages via payroll card accounts that are convertible into cash on demand at full face value. Among other things, the statute prohibits charging employees activation fees and requires that employees be provided the ability to make at least one withdrawal per pay period without charge for any amount up to the full balance in the account.

- 08/30/2017

Louisiana (PDF)

The Louisiana statutes and regulations do not expressly address the payment of wages using paycards.

- 11/09/2015

Maine Legislature (PDF)

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.

- 12/13/2012

Maryland Legislature (PDF)

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.

- 12/13/2012

Maryland Legislature (PDF)

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.

- 05/05/2015

Massachusetts (PDF)

The Massachusetts statutes and regulations do not expressly address the payment of wages using paycards.

- 11/09/2015

Michigan (PDF)

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.

- 12/13/2012

Michigan Department of Labor and Economic Growth (PDF)

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.

- 12/13/2012

Minnesota Legislature (PDF)

SF 2093 (Ch. 158 2005)
Effective June 3, 2005
Amends section 177.23 and adds section 177.255 to the Minnesota Statutes, permitting the use of payroll cards if a variety of conditions are satisfied. Among other things, these conditions relate to ownership of the funds deposited into the payroll card account, written disclosures that must be made by employers, written consent by participating employees, and limitations on permissible fees. A sunset provision requiring the payroll card pursuant to which the payroll card sections would expire on May 31, 2007 was repealed by SF 2830 (2007-2008).

- 12/13/2012