| Old | New | Differences | |
|---|---|---|---|
| 1 | - | General Assembly Substitute Bill No. 6407 | |
| 2 | - | January Session, 2011 *_____HB06407LAB___031511____* | |
| 1 | + | General Assembly Raised Bill No. 6407 | |
| 2 | + | January Session, 2011 LCO No. 3429 | |
| 3 | + | *03429_______LAB* | |
| 4 | + | Referred to Committee on Labor and Public Employees | |
| 5 | + | Introduced by: | |
| 6 | + | (LAB) | |
| 3 | 7 | ||
| 4 | 8 | General Assembly | |
| 5 | 9 | ||
| 6 | - | ||
| 10 | + | Raised Bill No. 6407 | |
| 7 | 11 | ||
| 8 | 12 | January Session, 2011 | |
| 9 | 13 | ||
| 10 | - | *_____HB06407LAB___031511____* | |
| 14 | + | LCO No. 3429 | |
| 15 | + | ||
| 16 | + | *03429_______LAB* | |
| 17 | + | ||
| 18 | + | Referred to Committee on Labor and Public Employees | |
| 19 | + | ||
| 20 | + | Introduced by: | |
| 21 | + | ||
| 22 | + | (LAB) | |
| 11 | 23 | ||
| 12 | 24 | AN ACT ALLOWING EMPLOYERS TO PAY WAGES USING PAYROLL CARDS. | |
| 13 | 25 | ||
| 14 | 26 | Be it enacted by the Senate and House of Representatives in General Assembly convened: | |
| 15 | 27 | ||
| 16 | 28 | Section 1. Section 31-71b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): | |
| 17 | 29 | ||
| 18 | - | (a) | |
| 30 | + | (a) Each employer, by himself, his agent or representative, shall pay weekly all moneys due each employee on a regular pay day, designated in advance by the employer [, in] using one or more of the following methods: (1) In cash, (2) by negotiable checks, [or,] (3) upon an employee's written request, by credit to such employee's account in any bank which has agreed with the employer to accept such wage deposits, or (4) on a payroll card, provided the requirements of subsection (d) of this section are satisfied. | |
| 19 | 31 | ||
| 20 | - | ( | |
| 32 | + | (b) The end of the pay period for which payment is made on a regular pay day shall be not more than eight days before such regular pay day, provided, if such regular pay day falls on a nonwork day, payment shall be made on the preceding work day. | |
| 21 | 33 | ||
| 22 | - | ( | |
| 34 | + | (c) This section shall not be construed to prohibit a local or regional board of education and a recognized or certified exclusive bargaining representative of its certified or noncertified employees from including within their collective bargaining agreement a schedule for the payment of wages to certified employees or noncertified employees that differs from the requirements of subsections (a) and (b) of this section. | |
| 23 | 35 | ||
| 24 | - | ( | |
| 36 | + | (d) An employer may use payroll cards to deliver wages, salary or other compensation to employees provided: | |
| 25 | 37 | ||
| 26 | - | ||
| 38 | + | (1) An employee hired before October 1, 2011, must consent, in writing or electronically, to the payment of wages, salary or other compensation using a payroll card. | |
| 27 | 39 | ||
| 28 | - | ||
| 40 | + | (2) An employer may require an employee hired on or after October 1, 2011, to receive his or her wages through direct deposit or on a payroll card, provided: | |
| 29 | 41 | ||
| 30 | - | ||
| 42 | + | (A) The employee is given a form that allows the employee the option of receiving wages by direct deposit to his or her personal account at a financial institution or through a payroll card; and | |
| 31 | 43 | ||
| 32 | - | ( | |
| 44 | + | (B) The employee is notified that failure to return the form to the employer in time to process the employee's initial wage payment with the information necessary to implement direct deposit will be considered consent to receiving wages through a payroll card; | |
| 33 | 45 | ||
| 34 | - | ( | |
| 46 | + | (3) An employee must be able to make at least one withdrawal or transfer each pay period without charge for any amount up to and including the full amount of the employee's wages for the pay period, except that an employee who is paid more frequently than weekly must be able to make at least one withdrawal or transfer each week without charge for any amount up to and including the full amount of the employee's wages for that week. | |
| 35 | 47 | ||
| 36 | - | ( | |
| 48 | + | (4) None of the employer's costs associated with paying wages using a payroll card or establishing the payroll card account shall be deducted from the wages, salary or other compensation delivered to the employee. | |
| 37 | 49 | ||
| 38 | - | ( | |
| 50 | + | (5) An employee must be provided with a means of checking his or her account balances through an automated telephone system and electronically without cost to the employee. | |
| 39 | 51 | ||
| 40 | - | (B) Is notified, in clear and conspicuous language, on the form provided pursuant to subparagraph (A) of this subdivision, that failure to return the form to the employer in time to process the employee's initial wage payment with the information necessary to implement direct deposit will be considered consent to receiving wages through a payroll card. | |
| 41 | - | ||
| 42 | - | (3) An employee shall be allowed to make at least two withdrawals or transfers each week without charge for any amount up to and including the full amount of the employee's wages, except that an employee who is paid more frequently than weekly shall be allowed to make at least one withdrawal or transfer each week without charge for any amount up to and including the full amount of the employee's wages for that week. | |
| 43 | - | ||
| 44 | - | (4) None of the costs associated with paying wages using a payroll card or establishing the payroll card account shall be deducted from or charged against the wages, salary or other compensation delivered to the employee by the employer or the card issuer during the employee's employment with the employer and for sixty days after the termination of such employment with the employer, including, but not limited to, fees for the following: (A) Loading wages onto the payroll card, (B) maintaining the payroll card account, (C) issuing the initial payroll card to the employee, (D) issuing one free replacement card upon request to the employee per calendar year, (E) closing the payroll card account, (F) inactivity, (G) low balance or declined transactions, or (H) other similar fees for the maintenance or use of the account. | |
| 45 | - | ||
| 46 | - | (5) If the payroll card bears an expiration date: (A) The funds on the card shall not expire, and (B) during the employee's employment with the employer and for sixty days after the termination of such employment with the employer, the employee shall be provided with a replacement card, free of charge, prior to the expiration date. | |
| 47 | - | ||
| 48 | - | (6) An employee shall be provided a means of checking his or her account balances through an automated telephone system and electronically without cost to the employee. | |
| 49 | - | ||
| 50 | - | (7) Upon obtaining consent from the employee under subdivision (1) of this subsection, or for an employee hired on or after October 1, 2011, but prior to an employer requiring the use of payroll cards to deliver wages, salary or other compensation to employees upon the institution of such requirement and thereafter upon hire, an employer shall provide the employee with clear and conspicuous notice, in writing, and in the language the employer normally uses to communicate employment-related polices to his or her employees, of the following items: | |
| 52 | + | (6) Prior to obtaining consent from the employee under subdivision (1) of this subsection, or at the time of hire pursuant to subdivision (2) of this subsection, an employer must provide the employee with notice, in writing, in the language the employer normally uses to communicate employment-related polices to his or her employees of the following items: | |
| 51 | 53 | ||
| 52 | 54 | (A) The terms and conditions relating to the use of the payroll card, including a list of fees that may be assessed by the card issuer; | |
| 53 | 55 | ||
| 54 | 56 | (B) The methods available to employees for accessing their full wages in lawful money of the United States without any fee to the employee; | |
| 55 | 57 | ||
| 56 | 58 | (C) The methods available to employees for checking their balances in the payroll card account without cost; and | |
| 57 | 59 | ||
| 58 | 60 | (D) A statement as to whether third parties may assess additional fees. | |
| 59 | 61 | ||
| 60 | - | ( | |
| 62 | + | (7) The employer shall furnish the employee with a statement of deductions made from his or her wages for each pay period such deductions were made in accordance with section 31-13a, as amended by this act. | |
| 61 | 63 | ||
| 62 | - | ( | |
| 64 | + | (8) The employee must be permitted, on timely notice to the employer, to receive his or her wages, salary or other compensation by direct deposit into a personal account at a financial institution. The employer shall begin payment by direct deposit not later than fourteen days after receiving both the employee's request and the account information necessary to make the deposit. | |
| 63 | 65 | ||
| 64 | - | ( | |
| 66 | + | (9) Wages paid to an employee using a payroll card must be a deposit that is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration on a pass-through basis to the employee. | |
| 65 | 67 | ||
| 66 | - | ( | |
| 68 | + | (10) A payroll card account that is only used to receive employee wages, salary or other compensation shall be exempt from execution under section 52-367b in accordance with subsection (f) of section 52-361a. | |
| 67 | 69 | ||
| 68 | - | ( | |
| 70 | + | [(d)] (e) Nothing in this section shall be construed to apply to employees swapping workdays or shifts as permitted under a collective bargaining agreement. | |
| 69 | 71 | ||
| 70 | - | ( | |
| 72 | + | (f) Nothing in this section shall be construed to preempt or override the terms of any collective bargaining agreement effective prior to October 1, 2011, with respect to methods of an employer's payment of wages, salary or other compensation due to employees. | |
| 71 | 73 | ||
| 72 | - | (14) Wages paid to an employee using a payroll card shall be a deposit that is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration on a pass-through basis to the employee. | |
| 73 | - | ||
| 74 | - | (15) A payroll card account that is used exclusively to receive employee wages, salary or other compensation shall be exempt from execution under section 52-367b in accordance with subsection (f) of section 52-361a. | |
| 75 | - | ||
| 76 | - | [(d)] (f) Nothing in this section shall be construed to apply to employees swapping workdays or shifts as permitted under a collective bargaining agreement. | |
| 77 | - | ||
| 78 | - | (g) Nothing in this section shall be construed to preempt or override the terms of any collective bargaining agreement effective prior to October 1, 2011, with respect to methods of an employer's payment of wages, salary or other compensation due to employees. | |
| 79 | - | ||
| 80 | - | (h) Nothing in this section shall be construed to restrict the fees that a payroll card issuer may charge the employer pursuant to a payroll card agreement between the payroll card issuer and the employer, provided those fees are not charged to or passed onto any employee. | |
| 74 | + | (g) For the purposes of this section, "payroll card" means a stored value card or other device used by an employee to access wages from a payroll card account, and "payroll card account" means an account that is directly or indirectly established through an employer and to which transfers of the employee's wages, salary or other compensation are made. | |
| 81 | 75 | ||
| 82 | 76 | Sec. 2. Section 31-13a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): | |
| 83 | 77 | ||
| 84 | - | (a) With each wage payment each employer shall furnish to each employee | |
| 78 | + | (a) With each wage payment each employer shall furnish to each employee in writing or electronically a record of hours worked, the gross earnings showing straight time and overtime as separate entries, itemized deductions and net earnings, except that the furnishing of a record of hours worked and the separation of straight time and overtime earnings shall not apply in the case of any employee with respect to whom the employer is specifically exempt from the keeping of time records and the payment of overtime under the Connecticut Minimum Wage Act or the Fair Labor Standards Act. | |
| 85 | 79 | ||
| 86 | - | (b) If the record of hours is furnished electronically pursuant to subsection (a) of this section, the employer must provide a means for each employee to access the information and print it without cost to the employee. Any information contained in the record furnished electronically pursuant to subsection (a) of this section | |
| 80 | + | (b) If the record of hours is furnished electronically pursuant to subsection (a) of this section, the employer must provide a means for each employee to access the information and print it without cost to the employee. Any information contained in the record furnished electronically pursuant to subsection (a) of this section must incorporate safeguards to ensure the confidentiality of an employee's personal information. | |
| 87 | 81 | ||
| 88 | 82 | ||
| 89 | 83 | ||
| 90 | 84 | ||
| 91 | 85 | This act shall take effect as follows and shall amend the following sections: | |
| 92 | 86 | Section 1 October 1, 2011 31-71b | |
| 93 | 87 | Sec. 2 October 1, 2011 31-13a | |
| 94 | 88 | ||
| 95 | 89 | This act shall take effect as follows and shall amend the following sections: | |
| 96 | 90 | ||
| 97 | 91 | Section 1 | |
| 98 | 92 | ||
| 99 | 93 | October 1, 2011 | |
| 100 | 94 | ||
| 101 | 95 | 31-71b | |
| 102 | 96 | ||
| 103 | 97 | Sec. 2 | |
| 104 | 98 | ||
| 105 | 99 | October 1, 2011 | |
| 106 | 100 | ||
| 107 | 101 | 31-13a | |
| 108 | 102 | ||
| 103 | + | Statement of Purpose: | |
| 109 | 104 | ||
| 105 | + | To allow employers to pay his or her employee's wages using payroll cards, and to allow certain wage and hour information provided by an employer to employees be delivered electronically provided certain conditions are met. | |
| 110 | 106 | ||
| 111 | - | LAB Joint Favorable Subst. | |
| 112 | - | ||
| 113 | - | LAB | |
| 114 | - | ||
| 115 | - | Joint Favorable Subst. | |
| 107 | + | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] |