Back to News

Pennsylvania Law Clarifies Use of Payroll Debit Cards

Published on

May 16, 2017

After initial confusion, employers may now legally use payroll debit cards to pay employees.

While the courts have decried the practice as a violation of the state’s Wage Payment Collection Law, a new bill, signed by Gov. Wolf last fall with an effective date of May 4, amends Pennsylvania’s Banking Code and supersedes that court decision. Barley Snyder attorneys have been tracking the bill through the Pennsylvania government.

Employers must meet the following conditions to use payroll debit cards:

  1. Employees must be given the option for paper checks if they prefer;
  2. Employees must be properly notified of their options;
  3. Employees must affirmatively authorize use of the card;
  4. The card must allow one free withdrawal each pay period and one in-network ATM withdrawal at least weekly;
  5. The employee must have the ability to check the card’s balance electronically or via telephone without cost; and
  6. There must be no fees associated with the issuance, replacement (one per year), transfer of wages, or non-use (for up to twelve months) of the card.

Employers using payroll debit cards should review their practices to ensure compliance with these conditions. Any employer who has questions on this now-legal practice should reach out to Barley Snyder’s Employment Law Practice Group.

Related News

View More News
News Alert
June 1, 2023

National Labor Relations Board Eyes Non-Compete Agreements

The National Labor Relations Board (NLRB) made recent headlines yet again. ...

Learn More
Press Release
May 26, 2023

Barley Snyder Partner Jennifer Craighead Carey Honored in Millersville University’s Marvelous Marauder Program

For Immediate Release Lancaster, Pa. – Barley Snyder is pleased to announ...

Learn More
News Alert
May 22, 2023

New EEOC Guidelines to Ensure AI Maintains Equality in the Workplace

On May 18, the Equal Employment Opportunity Commission (EEOC) released new ...

Learn More

Other Upcoming Events

View All Upcoming Events
7:30 am
10:45 am

Wake Up With Barley – A Morning on Real Estate 2023

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
Super Lawyers
Best Law Firms US News
Best Lawyers