Electronic Pay Choice Act

Electronic Pay Choice Act

Summary

An Act relating to the method of payment of wages and salaries by employers to employees.

Model Policy

{Title, enacting clause, etc.}

Section 1. {Short Title.} This Act may be cited as the Electronic Pay Choice Act.

Section 2. Payment of wages or salaries shall be

  1. in lawful money of the United States; and
  2. by check payable at face value upon demand in lawful money of the United

States; or

(C) by electronic automated fund transfer in lawful money of the United States into an account in the name of the employee at a financial institution designated by the employee; or

(D) by credit to a prepaid debit card or card account from which the employee is able to withdraw or transfer funds with full written disclosure by the employer of any applicable fees and affirmative consent thereto by the employee.

However, an employer that elects not to pay wages or salaries in accordance with clause (i) or (ii) shall be permitted to pay wages or salaries by credit to a prepaid debit card or card account in accordance with clause (iv), even though such employee has not affirmatively consented thereto, if the employee fails to designate an account at a financial institution in accordance with clause (iii) and the employer arranges for such card or card account to be issued through a network system through which the employee shall have the ability to make at least one free withdrawal or transfer per pay period, which withdrawal may be for any sum in such card or card account as the employee may elect, using such card or card account at financial institutions participating in such network system

Section 3. {Severability Clause}

Section 4. {Repealer Clause}

Section 5. {Effective Date}

 

 Approved by ALEC Board of Directors on September 19, 2010.

Keyword Tags: Commerce Insurance and Economic Development Task Force, Financial Services, Regulation