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
August 1, 2022

EEOC: COVID-19 Screening Now Must Meet Business Necessity Test

Although COVID-19 still poses a threat to businesses and the public, the U....

Learn More
News Alert
June 23, 2022

EEOC Updates Guidance on Employer Use of Assessment Software, Algorithms and AI

On May 12, 2022, the Equal Employment Opportunity Commission (EEOC) issued ...

Learn More
News Alert
May 25, 2022

Losing the Forest for the Trees: Third Circuit Reverses NLRB in ‘Joke’ v. ‘Threat’ ULP Case

It was all a joke. That’s what the Third Circuit Court of Appeals conclud...

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