AK HB203

Amends AS 23.10.040 to allow wage payments by payroll card account as an exception to the existing requirement that employers pay wages in lawful U.S. money or negotiable checks.

Employers may credit employee wages to a payroll card account only if the employee voluntarily authorizes it or has not authorized direct deposit under AS 23.10.043.

Employers must notify employees of wage payment options, payroll card terms and fees, cost-free wage access methods, and cost-free balance check methods before using payroll cards.

Payroll card accounts must provide at least one cost-free withdrawal per week or pay period and unlimited cost-free balance checks via automated telephone and electronic systems.

Employers cannot charge fees for card application, initial issuance or one annual replacement, wage transfers to the account, or point-of-sale transactions, and wages must be insured through FDIC, NCUA, or equivalent deposit insurance.