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.