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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of wages by an employer through a payroll |
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card account. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 61.001, Labor Code, is amended by adding |
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Subdivision (6-a) to read as follows: |
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(6-a) "Payroll card account" means an account that is |
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directly or indirectly established by an employer into which each |
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participating employee's wages, salary, or other form of |
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compensation is deposited on a recurring basis and for which the |
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employee receives a payroll card to access the funds in the account. |
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SECTION 2. Section 61.016(a), Labor Code, is amended to |
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read as follows: |
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(a) An employer shall pay wages to an employee: |
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(1) in United States currency; |
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(2) by a written instrument issued by the employer |
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that is negotiable on demand at full face value for United States |
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currency; or |
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(3) by the electronic transfer of funds to: |
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(A) a financial institution account designated |
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by the employee; or |
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(B) a payroll card account established by the |
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employer. |
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SECTION 3. Section 61.017, Labor Code, is amended by adding |
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Subsections (d) and (e) to read as follows: |
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(d) An employer may elect to pay wages to an employee |
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through a payroll card account plan that is linked to a federally |
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insured financial institution and uses electronic funds transfer to |
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deposit wages in the employee's payroll card account. An employer |
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who elects to pay wages through a payroll card account shall: |
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(1) not later than the 60th day before the date of the |
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first electronic funds transfer to the payroll card account of an |
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affected employee or, for an employee hired after the date the |
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employer adopts the plan, not later than the employee's first day of |
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work: |
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(A) notify the employee in writing regarding the |
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employer's adoption of a payroll card account plan; and |
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(B) provide to the employee: |
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(i) a complete list of all fees associated |
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with the employee's payroll card account in English, or, if the |
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employer offers a payroll card account to an employee in a language |
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other than English, in that other language; and |
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(ii) a form the employee may use to request |
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an alternate form of payment if the employee elects to opt out of |
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the payroll card account plan; and |
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(2) obtain from the employee any information required |
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by the payroll card account issuer that is necessary to implement |
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the electronic funds transfer. |
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(e) If an employee requests an alternate form of payment |
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under Subsection (d)(1)(B)(ii), the employer shall pay the |
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employee's wages in the alternate form as soon as practicable, but |
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not later than the first payday occurring after the 30th day after |
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the employee requests the alternate form of payment. |
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SECTION 4. This Act takes effect September 1, 2019. |