CA AB1239

Extends authorization for employers to deposit workers' compensation disability indemnity payments into prepaid card accounts until January 1, 2027 (previously set to expire January 1, 2025).

Requires prepaid cards to allow employees to withdraw full balances without fees, provide reasonable ATM access, permit fee-free point-of-sale purchases, and prohibit credit links.

Limits permissible prepaid card fees to expedited card replacement, out-of-network ATM fees after the third withdrawal per deposit, and foreign transaction fees.

Allows either employer or employee to change payment methods by providing 30 days' written notice.

Requires Commission on Health and Safety and Workers' Compensation to report on prepaid card program usage, including number of participants and cash value of benefits deposited.