Act No. 115

(S.58)

Labor; payment of wages; payroll cards

This act allows employers to pay their employees by depositing their wages into a payroll card account under certain conditions. It requires that an employee consent to the payroll card account; that the employee be provided with a written disclosure of all the terms and conditions of the account in a language that the employee understands; that the account allow at least three free withdrawals during each pay period at a location convenient to the place of employment; and that the payroll card be branded and that it can be used at PIN-based or signature-based outlets. The act requires that the employee be provided with a free written transaction history each month. The act also allows the department of banking, insurance, securities, and health care administration to make rules regarding payroll card accounts.

Date Signed by the Governor:  May 21, 2010

Effective Date:  On passage (May 21, 2010, the date on which the governor signed the bill)