Pennsylvania 2025-2026 Regular Session

Pennsylvania Senate Bill SB581

Introduced
4/9/25  
Refer
4/9/25  

Caption

Amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

Impact

If enacted, this legislation would enhance consumer protections for employees receiving their wages through electronic payment systems. It requires employers to uphold an employee's right to designate their receiving account and provides a framework for transitioning to payroll card accounts without coercion. The bill prohibits using accounts that charge overdraft fees and ensures employees can withdraw funds without incurring charges, protecting their economic interests. Thereby, it reinforces the legal clarity around electronic payments as suitable for wage disbursement.

Summary

Senate Bill 581 seeks to amend existing regulations concerning electronic funds transfers, specifically regarding payroll card accounts and the protections afforded to employees. The bill aims to ensure that employees are informed about their payment options and the associated fees and terms of payroll accounts. Notably, it mandates that employers must provide clear and conspicuous notifications of these options prior to enrolling employees in payroll card programs, highlighting that employees do not have to accept such cards and can choose direct deposit into a financial institution of their preference.

Sentiment

The sentiment around SB581 has been cautiously optimistic among its supporters, who view it as a necessary step toward modernizing wage payment methods while safeguarding employees from potential abuse associated with payroll cards. However, there is also skepticism regarding the implementation of these regulations, as some stakeholders express concern over potential pushback from employers who may prefer more flexible payment methods without additional stipulations.

Contention

A point of contention regarding SB581 lies in the balance between employee protections and employer flexibility in payment methods. Some critics argue that the stipulations could result in additional administrative burdens for employers, particularly smaller businesses. However, proponents counter that the need for employee awareness and option transparency outweighs these concerns, arguing that such regulations protect vulnerable employees from exploitation by promoting better financial practices.

Companion Bills

No companion bills found.

Previously Filed As

PA SB1026

Amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

PA HB940

Amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

PA HB2398

In transfers of credits between institutions of higher education, further providing for definitions and for duties of public institutions of higher education, providing for guaranteed admission, for reports to General Assembly and for dispute resolution and further providing for Transfer and Articulation Oversight Committee, for duties of department and for applicability; in higher education accountability and transparency, further providing for definitions and providing for student fee transparency; and providing for institutions of higher education and Dual Credit Innovation and Equity Grant Program.

PA SB1232

In liability and compensation, further providing for payment of compensation.

PA HB2370

In preliminary provisions, providing for advertising and sponsorships; in charter schools, further providing for definitions, for charter school requirements and for funding for charter schools, providing for funding for cyber charter schools, for cyber charter school requirements, for powers and composition of board of trustees and for educational management service providers, further providing for powers and duties of department and for assessment and evaluation, providing for annual reports and public reporting and for fund balance limits, further providing for cyber charter school requirements and prohibitions and for school district and intermediate unit responsibilities, providing for access to other schools' facilities, further providing for establishment of cyber charter school, providing for renewals, for charter amendments and for causes for nonrenewal, revocation or termination, further providing for State Charter School Appeal Board review, for cyber charter school application and for enrollment and notification, providing for enrollment parameters and for enrollee wellness checks and further providing for applicability of other provisions of this act and of other acts and regulations; and, in reimbursements by Commonwealth and between school districts, further providing for student-weighted basic education funding, providing for adequacy and tax equity supplements and for accountability to Commonwealth taxpayers and further providing for Pennsylvania accountability grants.

PA SB989

In additional special funds and restricted accounts, providing for Safe Path Restricted Account; and making a transfer.

PA HB2142

In additional special funds and restricted accounts, providing for Safe Path Restricted Account; and making a transfer.

PA HB476

In professional employees, further providing for transferred programs and classes.

PA HB1579

Providing for Commonwealth grant accountability and transparency.

PA SB978

In auditors and accountants, further providing for appointment of accountant.

Similar Bills

PA HB940

Amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

PA SB1026

Amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

TX HB667

Relating to the payment of wages by an employer through an electronic transfer of funds to a payroll card account.

TX HB1196

Relating to the payment of wages by an employer through an electronic transfer of funds to a payroll card account.

LA HB340

Creates the Personal Online Account Privacy Protection Act (EN NO IMPACT GF EX See Note)

IN SB0122

Nonprofit loan center loans for state employees.

IN SB0200

Nonprofit loan center loans for state employees.

LA HB314

Creates the Personal Online Account Privacy Protection Act (RE NO IMPACT See Note)