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
November 3, 2023

2024 Cost-of-Living Adjustments

The IRS and Social Security Administration have announced the 2024 cost-of-...

Learn More
Press Release
October 31, 2023

Barley Snyder Further Expands Gettysburg Office 

For Immediate Release Gettysburg, Pa. – Barley Snyder is excited to annou...

Learn More
Press Release
October 12, 2023

Barley Snyder Named One of the Best Places to Work in PA for Second Consecutive Year

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

Learn More

Other Upcoming Events

View All Upcoming Events
Dec
07
3:30 pm
-
6:00 pm
event
Location

Barley Snyder’s Reading Open House!

Learn More
Dec
12
4:30 pm
-
6:30 pm
event
Location

Barley Snyder’s Gettysburg Open House!

Learn More
Jan
10
12:00 pm
-
1:00 pm

Complying with FinCEN’s Beneficial Ownership Reporting Rule Under the Corporate Transparency Act Webinar

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
RECOGNIZED IN
Super Lawyers
Best Law Firms US News
Best Lawyers