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