Many employers implement paycard programs in the hope of reducing, and even eliminating, reliance on paper paychecks. The wage and hour laws in most states identify the permissible methods of paying employees who work in the state. Some states allow employers to offer their employees the choice between direct deposit to an account of the employee's choosing and a paycard. Other states require a paper paycheck option. Any decision to eliminate paper paychecks in states that permit purely electronic pay should be carefully considered with input from appropriate business groups. Legal counsel should be consulted with questions about the requirements in states where your employees work.
See the Compliance & Regulation section of this Portal for information about states that address paycards in their wage payment statutes and regulations.