86R3289 SMT-D
By: Hinojosa S.B. No. 1485
A BILL TO BE ENTITLED
AN ACT
relating to the payment of wages by an employer through a payroll
card account.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 61.001, Labor Code, is amended by adding
Subdivision (6-a) to read as follows:
(6-a) "Payroll card account" means an account that is
directly or indirectly established by an employer into which each
participating employee's wages, salary, or other form of
compensation is deposited on a recurring basis and for which the
employee receives a payroll card to access the funds in the account.
SECTION 2. Section 61.016(a), Labor Code, is amended to
read as follows:
(a) An employer shall pay wages to an employee:
(1) in United States currency;
(2) by a written instrument issued by the employer
that is negotiable on demand at full face value for United States
currency; or
(3) by the electronic transfer of funds to:
(A) a bank account designated by the employee; or
(B) a payroll card account established by the
employer.
SECTION 3. Section 61.017, Labor Code, is amended by adding
Subsection (d) to read as follows:
(d) An employer may elect to pay wages to an employee
through a payroll card account plan that uses electronic funds
transfer to deposit wages in the employee's payroll card account.
An employer who desires to pay wages through a payroll card account
shall:
(1) notify each affected employee in writing that the
employer is adopting a payroll card account plan not later than:
(A) the 60th day before the date of the first
electronic funds transfer to the payroll card account; or
(B) the first day of work for an employee hired
after the date the employer adopts the plan;
(2) obtain from the employee any information required
by the payroll card account issuer that is necessary to implement
the electronic funds transfer;
(3) provide a complete list of all fees that may be
deducted from the employee's payroll card account by the employer
or payroll card account issuer in English, or, if the employer
offers a payroll card account to an employee in a language other
than English, in that other language; and
(4) provide a form the employee may use to request an
alternate form of payment if the employee elects to opt out of the
payroll card account plan.
SECTION 4. This Act takes effect September 1, 2019.