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. 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 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

North Dakota Legislature (PDF)

N.D. Cent. Code § 34-14-02
Paycard provisions added by HB 1347 (2005 Chapter 304)
Effective August 1, 2005
Section 34-14-02 of the North Dakota Century Code permits the payment of wages using stored value cards issued by a federally insured bank or credit union. Among other things, the funds underlying the card must be an insured deposit and employee participation must be voluntary.

- 12/13/2012

Ohio (PDF)

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

- 11/09/2015

Oklahoma (PDF)

Attorney General Opinion No. 09-31 (November 17, 2009)
Section 165.2 of Title 40 of the Oklahoma Statutes authorizes the payment of wages using "electronic means." In this opinion letter, the state Attorney General opines that section 165.2 must be interpreted in accordance with the federal Electronic Funds Transfer Act (EFTA) and Regulation E. Among other things, the letter addresses the circumstances under which employers may compel the payment of wages using electronic means and the electronic delivery of deduction statements.

- 12/13/2012

Oregon (PDF)

Oregon Revised Statutes, § 652.110
Paycard provisions added by HB 2256 (2007 Chapter 546)
Effective January 1, 2008
Amended by HB 2683 (2013 Chapter 380)
Effective January 1, 2014
Section 652.110 identifies permissible methods of wage payment in Oregon, and sets for the conditions for paying wages using payroll cards and other means of electronic fund transfer. Among other things, the statute requires an agreement between the employer and the employee that meets specified conditions and addresses access to wages without cost.

- 12/13/2012

Oregon Bureau of Labor and Industries (PDF)

Direct Deposit Frequently Asked Questions
In this Frequently Asked Question, Oregon's Bureau of Labor and Industries addresses the payment of wages using "debit cards" in accordance with section 652.110(5) of the Oregon Revised Statutes.

- 12/13/2012

Pennsylvania (PDF)

Pennsylvania Statutes, Title 7, §§ 6121 et seq
Paycard provisions added by SB 1265 (Act No. 2016-161)
Effective May 3, 2017
The Act provides that where a law or regulation requires that a payment be made in lawful money or by check, the payment may be made by credit to an account at a financial institution, including a payroll card account, if the recipient of the payment has authorized the payment method in writing or electronically. Certain conditions must be satisfied when payroll cards are used. Among other things, these conditions relate to disclosures, cash access, fees and change in payment methods.

Note that Pennsylvania's Wage Payment and Collection law requires that wages be paid in lawful money or the United States or by check. See 43 Pa. Stat. § 260.3.

- 08/30/2017

Rhode Island (PDF)

Rhode Island General Law § 28-14-10.1
Paycard provisions added by SB 351 (2015 Chapter 267)
Effective July 15, 2015
Section 28-14-10.1 of the Rhode Island General Laws authorizes the payment of wages by credit to a payroll card account upon written or electronic request of the employee. Among other things, the statute defines "payroll card account" and requires that employees be able to make at least one withdrawal from the payroll card account each pay period without charge.

- 11/09/2015

South Carolina (PDF)

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

- 11/09/2015

South Dakota (PDF)

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

- 11/09/2015

Tennessee Legislature (PDF)

Tennessee Code § 50-2-103
Paycard provisions added by HB 3095 (2010 Public Chapter 874)
Effective May 3, 2010
Section 50-2-103 of the Tennessee Code authorizes the payment of wages using a prepaid debit card provided certain conditions are met. Among other things, these conditions require that employees also be given the option of being paid by direct deposit, receive written disclosure of applicable fees, and be able to make at least one withdrawal or transfer each pay period without cost for any amount contained on the card.

- 05/06/2015

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