Connecticut Senate Bill SB00908

Connecticut 2015 Regular Session

• Introduced: 2/13/15
• Refer: 2/13/15

Caption

An Act Allowing Employers To Pay Wages Using Payroll Cards.

Impact

If enacted, SB00908 would result in significant changes to the ways employers can fulfill their obligations for wage payments. Employers must inform employees clearly about the payroll card system, including potential fees and available methods to access their wages without incurring additional charges. The bill ensures employees have the right to withdraw or transfer wages without being charged, promoting equitable access to their earnings. Additionally, the legislation requires that the payroll accounts be insured by federal or state financial institutions, safeguarding the employees' funds.

Summary

SB00908, known as 'An Act Allowing Employers To Pay Wages Using Payroll Cards,' seeks to amend existing labor regulations in Connecticut. The bill allows employers to pay the wages of their employees via payroll cards, which function similarly to debit cards but are linked to specific accounts provided by payroll card issuers. The implementation of this act would enable employers to offer an electronic means of wage payment alongside traditional methods such as cash and checks, thereby enhancing the flexibility of wage disbursement options for employees.

Contention

There are concerns surrounding the use of payroll cards that could lead to potential points of contention. Critics may argue that while the bill enhances payment options, it also risks complicating wage access if employees face unforeseen fees or restrictions on their accounts. Some labor advocates worry that the movement towards electronic payments could disadvantage workers who lack access to banking services or those who prefer cash transactions. The balance between modernizing payment methods and ensuring financial protection for employees remains a topic of discussion as the bill progresses.