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.