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.