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

New York (PDF)

New York State Department of Labor - Methods of Payment of Wages [12 NYCRR Part 192]
Dated September 7, 2016
(Effective March 7, 2017)

These rules were published by the New York State Department of Labor (NYSDOL) on September 7, 2016. They identify permissible methods of wage payment including payroll debit cards, and set forth the conditions that must be met for each method.

Under the rules, an employer must provide its employees with information about their payment options and obtain the employees' voluntary consent prior to paying wages using a payroll debit card. The notice and consent must be provided in English and in the employee's primary language when a template is available from the NYSDOL. After providing notice and obtaining consent, the employer must wait seven business days before taking action to pay the employee using the payroll debit card. The rules also include strict cash access requirements, prohibit a number of fees and kickbacks, prohibit linking payroll debit cards to any form of credit, and require advance notice of changes in terms and conditions of the payroll debit card account. Please consult the rules for complete and specific information.

- 10/26/2016

North Carolina (PDF)

Fact Sheet on Debit/Payroll Card Payment
Dated August 30, 2005
The North Carolina statutes and regulations do not expressly address the payment of wages using paycards. In this Fact Sheet, the North Carolina Department of Labor's Wage and Hour Bureau sets forth its enforcement position on paycards. The Department takes the position that paying employees using payroll cards is an acceptable method of payment if certain conditions are met. In fact, the Department takes the position that electronic payment may be required under specified circumstances.

- 11/07/2012

North Dakota Legislature (PDF)

HB 1347 (Ch. 304 2005)
Effective August 1, 2005
Revises section 34-34-02 of the North Dakota Century Code to permit payment of wages using stored value cards issued by a federally insured bank or credit union. 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)

Or. Rev. Stat. § 652.110
Statute 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)

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

- 11/09/2015

Rhode Island (PDF)

Rhode Island General Law § 28-14-10.1
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

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