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

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provision requiring the payroll card pursuant to which the payroll card sections would expire on May 31, 2007 was repealed by SF 2830 (2007-2008).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

Mississippi (PDF)

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

- 11/10/2015

Missouri (PDF)

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

- 11/10/2015

Montana (PDF)

Electronic Wage Payment FAQs
Although the Montana statutes and regulations do not expressly address the payment of wages using paycards, the state Department of Labor and Industry has published a set of FAQs setting for its position on electronic wage payment methods including paycards. The Department takes the position that paycards may be used if participation is voluntary and certain other conditions are met. Among other things, the FAQs address the conditions under which paycards may be offered, the use of employee-issued convenience checks, employee access to funds, and the ability of employees to change their wage payment selection.

- 12/13/2012

Nebraska Legislature (PDF)

Laws 2014, LB 765
Effective January 1, 2015
Amends the Nebraska Wage Payment and Collection Act to establish the conditions for payment of wages using a payroll debit card. Sections 48-1229 and 48-1230 of the Revised Statutes of Nebraska are amended to define "payroll debit card", require access to full net wages at no cost, and require compliance with the compulsory use provision of the Electronic Fund Transfer Act.

- 05/06/2015

Nevada Office of the Labor Commissioner (PDF)

Nevada Admin. Code § 608.135
Effective August 25, 2004
Adds section 608.135 to the Nevada Administrative Code to permit electronic wage payment including payment on a debit card, if optional at the election of the employee. The employee must be provided at least one free transaction each pay period, and the program may not include any restriction or requirement that a reasonable person would find to be an unreasonable burden or inconvenience.

- 12/13/2012

New Hampshire Legislature (PDF)

HB 611 (Ch. 299 2007)
Effective September 11, 2008
Revises sections 275:42 and 275:43 of the New Hampshire Revised Statutes to make clear that an employer may use payroll cards so long as employees are provided with at least one means of withdrawing the full balance from the card each pay period, at a financial institution or other location convenient to the place of employment, without any cost. Employee participation must be voluntary and may not be made a condition of hire or continued employment. Employers that offer payroll cards must comply with certain notice and disclosure requirements and must ensure that the payroll card account complies with the federal Electronic Funds Transfer Act and Federal Reserve Regulation E.

- 12/13/2012

New Jersey (PDF)

New Jersey Admin. Code § 12:53-2.4
Section 12:53-2.4 of the New Jersey Administrative Code was amended effective October 6, 2008 to make clear that employers may compensate their employees using payroll debit cards with the employees' voluntary written consent and provided certain other conditions are met. Among other things, these conditions relate to employee consent, access to wages without cost or difficulty, required disclosures, and the ability to change payment method.

- 12/12/2012

New York (PDF)

New York State Department of Labor Opinion Letter on Paycards / Debit Cards
Dated October 29, 2009
(Effective until March 7, 2017)
Under section 192(1) of the New York Labor Law, an employee must consent in writing to the direct deposit of wages. In an October 29, 2009 opinions letter, counsel for the New York State Department of Labor (NYSDOL) expressed its position that paycards are a form of direct deposit and, therefore, that the payment of wages using paycards requires the employee's written consent. Employees must be provided with full notice of all of the terms and conditions of the paycard program, and may not be required to consent to the program as a condition of employment or hire.

The NYSDOL also opined that, under section 191 of the Labor Law, the imposition of fees for services that are essential for an employee to access his or her full wages from a paycard are prohibited. Finally, the Department emphasized that wages must be paid in a timely manner, employees must access to their full wages to the penny, and there may be no encumbrances that delay or limit an employee's access to his or her wages.

See additional letter below.

- 12/07/2012

New York (PDF)

2010 Opinion Letter on Paycards / Debit Cards
Dated January 15, 2010
(Effective until March 7, 2017)
In a January 15, 2010 opinion letter, counsel for the NYSDOL addressed the number of free withdrawals from the paycard account that employees must be provided each pay period.

- 11/09/2015