CT SB00211

Employers may offer payroll cards to employees as a wage payment method, effective October 1, 2016, but employees must retain the option to receive wages by direct deposit or negotiable check.

Employee authorization for payroll card payment must be voluntary, written or electronic, and employers cannot make payroll cards a condition of employment or threaten discharge or reprisal for refusal.

Employers must provide clear written notice before payroll card use including voluntary nature of the option, fees, fee-free access methods, balance-checking procedures, and information about third-party fees.

Payroll card accounts must be insured by FDIC or NCUA on a pass-through basis, allow at least three free withdrawals per pay period including one full balance withdrawal, and prohibit employer costs from being deducted from employee wages.

Employers cannot charge employees fees for card issuance, wage transfers, account maintenance, replacement cards, account closure, low balances, inactivity, or point-of-sale transactions; payroll cards cannot be linked to credit and overdraft fees are prohibited for the first two declined transactions monthly.