Texas House Bill HB1196

Texas 2009 - 81st Regular

• Out of House Committee: 4/8/09
• Voted on by House: 5/18/09

Caption

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

Impact

The bill's enactment would necessitate an adjustment in the current practices surrounding employee wage payments, particularly for businesses that utilize payroll cards as a form of payment. Employers would be required to ensure that employees voluntarily consent to this payment method, with clear communication about related terms and conditions. Importantly, the bill also stipulates that employees cannot be charged fees unless they are clearly disclosed, which is likely to enhance consumer protection for employees relying on payroll cards. Furthermore, employees would be provided with access to at least one free transaction history per month, which aligns with the legislative intent to safeguard employee rights.

Summary

House Bill 1196 aims to regulate the payment of wages through an electronic transfer of funds to a payroll card account. The bill defines key terms such as 'payroll card,' 'payroll card account,' and 'payroll card issuer,' establishing a legal framework for employers looking to implement payroll cards as a method of wage payment. The legislation mandates that employers must provide employees with clear and plain language disclosures about all wage payment options, including any fees associated with payroll cards. Notably, these disclosures must include a complete itemized list of fees that could be deducted from the employee's payroll card account, thereby reinforcing transparency in wage payments.

Contention

Discussions surrounding HB 1196 may reflect varying opinions on the use of electronic payment methods in wage disbursement. While proponents may argue that electronic payments streamline payroll processes and increase efficiency, critics might raise concerns regarding the potential for hidden fees and the necessity of educating employees about the implications of opting for a payroll card. Another point of contention could revolve around the challenge of ensuring that employees, especially those with limited financial literacy or access to technology, fully understand their rights and the terms under which they are paid via payroll cards. Ultimately, the balance between convenience for employers and protection for employees presents a dynamic area of debate.