78R7685 KSD-D

By:  Capelo                                                       H.B. No. 3308



A BILL TO BE ENTITLED

AN ACT

relating to the payment of wages through a direct deposit plan.               
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 61.017, Labor Code, is amended to read as 
follows:       
	Sec. 61.017.  DELIVERY OF PAYMENT.  (a)  An employer shall 
pay wages through a means authorized by this section.
	(b)  An employer may pay wages by:                                      
		(1)  delivering them to the employee at the employee's 
regular place of employment during regular employment hours;
		(2)  delivering them to the employee at a time and place 
agreed on by the employer and employee;
		(3)  sending them to the employee by registered mail, 
to be received by the employee not later than payday;
		(4)  delivering them in a manner similar to a manner 
specified by Subdivision (1), (2), or (3) to a person designated by 
the employee in writing; or
		(5)  delivering them to the employee by any reasonable 
means authorized by the employee in writing.
	(c)  An employer may elect to pay wages to an employee who 
maintains at a financial institution an account that qualifies for 
electronic funds transfer through a direct deposit plan that uses 
electronic funds transfer to deposit the wages in the employee's 
account.  An employer who desires to pay wages through a direct 
deposit plan shall:
		(1)  notify each affected employee in writing, at least 
60 days before the date on which the direct deposit payroll system 
is scheduled to begin, that the employer is adopting a direct 
deposit payroll system; and
		(2)  obtain from the employee any information required 
by the financial institution in which the employee maintains the 
account that is necessary to implement the electronic funds 
transfer.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.