Effective Friday, May 5, 2017, there are new rules for employers in Pennsylvania regarding paycards. These are centered around notice that the employer must furnish to employees before an employee may authorize the employer to issue payment with payroll cards.
The employer must furnish the employee with notice that includes:
- All available options for employee payments
- Terms & Conditions of payroll card accounts (for example, fees associated with the payroll card, as well as fees that may be associated with third parties)
- Options available to employees that would allow withdrawal of wages without fees
- Options available to employees to request to change payment method to direct deposit or paper check
The rules associated with paycard fees now include:
- Payroll cards must allow withdrawal each pay period for the amount of net wages and one free in-network ATM withdrawal per pay period.
- Paycard holders must be allowed to perform balance inquiries at ATMs or via electronic devices without cost.
No fees can be charged for:
- Pay Card Application
- Issuance of an initial card
- Issuance of one replacement card per year
- Loading of card by employer for employee
- Sales transactions
- Non-use or inactivity (up to 12 months of inactivity)
- Funds on a paycard may not expire.