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PA SB581

Bill

Status

Introduced

4/9/2025

Primary Sponsor

Nicholas Miller

Click for details

Origin

Senate

2025-2026 Regular Session

AI Summary

  • Employers may eliminate cash and check payment options for wages, requiring employees to receive payment only through direct deposit or payroll card accounts at financial institutions

  • Employees must receive at least 45 days advance notice before losing cash/check payment options, with clear explanation of their right to designate their own financial institution for deposits

  • If an employee fails to designate a financial institution at least 7 days before the specified payday, the employer may assign them to an employer-designated payroll card account

  • Employer-designated payroll card accounts cannot charge overdraft fees and must provide at least two free in-network ATM withdrawals per pay period (or one weekly if paid more frequently)

  • Employees may request to switch from payroll card to direct deposit, with the change taking effect no later than the first payday after 14 days from the request

Legislative Description

Amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

Last Action

Laid on the table (Pursuant to Senate Rule 9)

10/28/2025

Committee Referrals

Appropriations6/23/2025
Labor & Industry4/9/2025

Full Bill Text

No bill text available