Payroll Debit Update: The Law Plays Catch-up With Technology

Chain Store Age

In recent years, Littler has received an increasing number of inquiries regarding reloadable, prepaid payroll debit cards, as an alternative to paper payroll checks. While the benefit to employers are myriad, outdated state wage-payment laws have essentially prevented companies from implementing the use of payroll debit cards. This year, four states enacted legislation specifically allowing employers to compensate employees using the cards. Littler Special Counsel Cathy Beyda outlines the advantages of payroll debit cards, reviews recent legislation, and dispenses advice about choosing a program.