By:  Patterson                                         S.B. No. 325
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to payment of wages by electronic transfer.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 61.017, Labor Code, is amended to read as
    1-4  follows:
    1-5        Sec. 61.017.  Delivery of Payment.  (a)  An employer shall
    1-6  pay wages through a means authorized by this section.
    1-7        (b)  An employer may pay wages by:
    1-8              (1)  delivering them to the employee at the employee's
    1-9  regular place of employment during regular employment hours;
   1-10              (2)  delivering them to the employee at a time and
   1-11  place agreed on by the employer and employee;
   1-12              (3)  sending them to the employee by registered mail,
   1-13  to be received by the employee not later than payday;
   1-14              (4)  delivering them in a manner similar to a manner
   1-15  specified by Subdivision (1), (2), or (3) to a person designated by
   1-16  the employee in writing; or
   1-17              (5)  delivering them to the employee by any reasonable
   1-18  means authorized by the employee in writing.
   1-19        (c)  If an employee maintains an account that qualifies for
   1-20  electronic funds transfer at a financial institution, an employer
   1-21  may pay wages to that employee through the electronic transfer of
   1-22  the wages to the employee's account as follows:
   1-23              (1)  an employee may elect to have a portion of the
   1-24  wages paid by electronic funds transfer to an account at one
    2-1  financial institution and the remainder of the wages paid by
    2-2  electronic funds transfer to an account at a different institution;
    2-3              (2)  the employee shall choose which financial
    2-4  institution or institutions will receive the wages and in no event
    2-5  may the employer require the employee to establish an account at a
    2-6  specific financial institution;
    2-7              (3)  the payment of wages by electronic funds transfer
    2-8  shall not involve greater cost to the employee than the payment of
    2-9  wages by paper check or warrant;
   2-10              (4)  if an employee does not maintain an account that
   2-11  qualifies for electronic funds transfer, the employer shall not
   2-12  require the employee to establish such an account; and
   2-13              (5)  an employer that desires to pay wages through
   2-14  electronic funds transfer shall:
   2-15                    (A)  give written notice to each employee in
   2-16  English and Spanish that the employer is adopting an electronic
   2-17  funds transfer payroll system, including a statement, in boldface
   2-18  type of a minimum size of 10 points, that the employee may choose
   2-19  the financial institution to receive the payment of wages and in no
   2-20  event may the employer require the employee to establish an account
   2-21  if the employee does not currently maintain an account that
   2-22  qualifies for electronic funds transfer; and
   2-23                    (B)  obtain from each employee who maintains an
   2-24  account that qualifies for electronic funds transfer the
   2-25  information required in order to make payment of wages
   2-26  electronically to the employee's account.
   2-27        SECTION 2.  The importance of this legislation and the
    3-1  crowded condition of the calendars in both houses create an
    3-2  emergency and an imperative public necessity that the
    3-3  constitutional rule requiring bills to be read on three several
    3-4  days in each house be suspended, and this rule is hereby suspended.