50 State Payroll Card Compliance Map

An overview of current payroll card legislation, regulation, and agency guidance, state-by-state.

Hover over a state to find out whether an employer may mandate the electronic receipt of wages.
Click on a state to read about its payroll card requirements.

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If you have questions about payroll card laws or regulations, please contact Steve Middlebrook or Tom Kierner.

Fee Restrictions

None of the costs associated with paying wages via payroll card may be assessed to the employee. In addition, no fees may be assessed for:

issuing the initial card,
transferring wages from the employer to the card account,
maintaining the card account,
providing one replacement card per calendar year upon employee request,
closing the payroll card account,
maintaining a low balance,
inactivity or dormancy for the first 12 months of inactivity,
point-of-sale transactions,
overdrafts,
first two declined transactions each calendar month, or
the automatic written transaction histories provided for under Program Requirements.

Full, Free Access to Wages

Each pay period (but not more than weekly), employee must be able to make at least three free withdrawals from his or her payroll card at no cost. One of these withdrawals must permit the full withdrawal of net wages at a depository institution or other convenient location.

Choice Requirements

Employer must provide both check and direct deposit as an option.

Consent Requirements

Employee must voluntarily and expressly authorize payment via payroll cards in writing or electronically. Prior to obtaining consent, employer must provide certain disclosures (see Disclosure Requirements section). Employee must be able to freely revoke consent. Revocation must be honored ASAP, but no later than first pay day after 14 days following the revocation and information necessary to pay wages via newly selected method.

Disclosure Requirements

Employer must provide the following clear and conspicuous disclosures in the same language normally used to communicate employment-related policies to employees:

that receipt of wages via payroll cards are voluntary,
the payroll card account's terms and conditions,
the methods available to access full wages without fees,
the methods to avoid or minimize fees when using the cards,
methods available for checking balances without cost, and
that third parties may assess additional fees.

Program Requirements

Expiration Date - payroll card may have an expiration date provided the funds do not expire and the employee is provided with a replacement card without charge prior to the expiration date during the period when wages are applied (and 60 days after the last payment).

Balance - Employees must have method of checking their balances through IVR, ATM, or electronically, without cost, 24/7.

Linked to credit - Account may not be linked to any form of credit, and (to the extent possible) may not allow overdrafts

Written transaction histories - Employee must be provided the option receive monthly transaction histories at no cost for 12 months or until canceled by employee.

ATM Access - Must be associated with an ATM network that ensures availability of a "substantial number" of in-network ATMs in the state.

Pass-through Insurance - Account must be FDIC or NCUA insured on a pass-through basis to the employee.

*employer's obligations cease 60 days after the employment relationship has terminated.

Fee Restrictions

No fees may be assessed for any of the following:

Application, initiation, transfer, or loading of wages; the privilege of participation; or delivery of the initial card;
Checking the balance or account information online or via telephone 24/7;
Accessing the electronic history of the employee's account transactions for at least the last 60 days;
Receiving a written history of account transactions for at least the last 60 days, upon the employee's request.
Overdraft;
The ability to close the account or receive the remaining balance;
maintaining a certain account balance; or
Sending one replacement card per year at least 15 days prior to pay card's expiration date.*

*Note: This statutory provision is poorly worded. Payroll cards rarely have expiration dates every year. It is likely that the legislature intended to require payroll card issuers to provide one free replacement card every year and one free replacement card for expiring cards.

Full, Free Access to Wages

Payroll card program must allow at least three free withdrawals, at least one of which must permit the withdrawal of the full amount of the employee's net wages at a federally insured depository institution or ATM.

Program Requirements

The program must provide the following features:

The ability for the employee to check the balance or account information online and via telephone 24/7;
The ability for the employee to electronically access a 60-day history of the accounts transactions and an ability to receive a written copy of the same upon oral or written employee request;
The ability for the employee to close the account and receive the remaining balance
Employer must provide 21 days prior written notice to any change to the pay card program taking effect.
Funds may not expire. Account can be closed after six months of inactivity provided funds are refunded to employee at no cost.
Must be issued by a federally insured depository institution and redeemable at unaffiliated merchants or service providers or ATMs.

Consent & Choice Requirements

Employee must voluntarily authorize receipt of wages via payroll card in writing or via electronic signature. Prior to obtaining consent, employer must provide certain disclosures (see Disclosure Requirements section below) and provide employee the option to receive wages via direct deposit or paper check. Employee must be able to revoke consent. Employer must honor that revocation and change to direct deposit or check within two pay periods.

Disclosure Requirements

Employer must provide in plain language in at least 10-point font the following:

A description of the employee's wage payment options;
The fee schedule stating the dollar amount of all fees in a form the employee may retain;
Notice of whether third party fees may assess additional fees; and
A list of certain services that are provided at no cost.

*The employer's obligation shall cease sixty days after the employer-employee relationship ends and the employee has been paid the employee's final wages.

Free, Full Access to Wages

Must allow at least one method of withdrawing employee's full net wages once per pay period but no less than 2x per month at location readily available to the employee.

Fee Restrictions

May not assess fees for:

POS transactions;
Inactivity for the first year of inactivity;
Application, initiation, loading of wages, or participation; or
Declined transactions twice per month. After those required free declines, only commercially reasonable fees are permitted, limited to cover the costs to process declined transactions.

Program Requirements

Must provide in electronic or paper form, upon employee's request, one statement that includes all transactions and charges for free.
Must provide unlimited access to obtain account balance via telephone for free.
Card or account may not be linked to any form of credit including but not limited to overdraft fees, overdraft service fees, or a loan against future pay, or cash advance on future pay or work not yet performed.

Consent Requirements

Employee must provide voluntary written or electronic consent. Consent must be revocable (and honored within 2 pay periods) and cannot be a condition of employment or working conditions.

Choice Requirements

Employer must provide the choice of cash or check. Employer must provide all employees the same wage payment options..

Disclosure Requirements

Employer must notify within 30 days of the end of the employment relationship that terms and conditions of the account may change if the employee continues the relationship with the payroll card issuer.
Employer must provide clear and conspicuous written disclosure that payment by payroll card is voluntary. Notice must list other methods of payment offered by the employee and explain the terms and conditions of the payroll card account, including:
- A list of all fees that may be assessed by the issuer.
- A notice that third parties may assess fees
- An explanation of how the employee may obtain, at no cost, the employee's net wages, check account balances, and request paper or electronic transaction histories

*Employer obligations terminate 60 days after the termination of the employer/employee relationship.

Consent Requirements

Employee must provide written consent, obtained without coercion. However, such consent is not required if the employer paid wages to at least one employee before 1/1/05. Consent also not required if employer has provide the employee:

A written form that allows the employee the option to receive wages either by direct deposit to employee’s account at a financial institution or through a payroll card account.
A statement indicating that, except for an employee currently paid by direct deposit (or those being paid by payroll card before 1/1/05), failure to return the form within 30 days with the account info necessary to implement direct deposit will indicate consent to receive wages through payroll card. If an employee is currently paid by direct deposit, the method of payment may not be changed to payroll card without that employee’s written consent.
Written disclosure of certain items (see Disclosure Requirements).

Employee's right to Change Payment Method

The employee may request a change in the wage payment method, and that change request must be honored within 1 pay period after the employer receives the information necessary to implement the request.

Full, Free Access to Wages

Must allow at least 1 withdrawal per pay period (no more frequently than once per week) of any amount up to the card balance.

Program Requirements

May not be linked to any form of credit, including a loan against future pay or cash advance on future pay.
Must provide method for employee to make an unlimited number of balance inquiries for free, electronically or via phone.
Cardholder must maintain ownership of funds in payroll card account.
No change in fees or terms of service unless the employee has received a written notice at least 21 days in advance.

Fee Restrictions

Employee may not be required to pay any costs associated with wage payment.

Disclosure Requirements

If mandating electronic receipt of wages and defaulting employees to payroll cards, must provide the following disclosures:

Terms and conditions including list of fees
Methods for accessing wages without a charge
Notice that using out-of-network ATMs can result in fees by both the ATM network and the issuer
Methods to obtain free balance inquiries
Right of employee to elect to change to direct deposit without coercion
Notice that the payroll card does not provide access to a savings or checking account

Employers must provide the following disclosures, regardless if they're mandating electronic receipt of wages:

List of fees that may be assessed by the issuer
Notice that additional fees may be assessed by third parties

Consent Requirements

Employer must obtain employee's voluntary, written consent, signed by the employee. Consent may not be condition of hire/continued employment.
The consent signed by the employee must include the terms and conditions of the payroll card account. If employer offers the payroll card in a language other than English, it shall provide the written consent and account agreements in that other language.
A written copy of the consent must be provided to the employee and retained by the employer.
Employee may revoke the consent and request to be paid by another method. Employer must honor the request within 14 days.

Fee Restrictions

No fees for initiation, participation, loading, or other fees to receive wages via payroll card.
No dormancy / inactivity fees.
If fees were not disclosed, they may not be assessed.

Full, Free Access to Wages

For no fee, employee must be permitted to withdraw by a free transaction up to and including the employee's net pay on and after the regular payday.

Program Requirements

Issuer must file with the commissioner a notice containing issuer's name, d/b/a's, address, and phone number.
Employee must maintain ownership of the payroll account.
Payroll card account may not be linked to any form of credit.
Unless the employee consents in writing to the use, information generated by the employee's possession or use of the payroll card account may only be used to process transactions and administer the payroll card account.
Upon the employee's written or oral request, employer shall provide to the employee one free transaction history each month including all deposits, withdrawals, deductions, and charges

Disclosure Requirements

If employer offers the payroll card in a language other than English, it shall provide the written disclosures in the payroll card account terms and conditions in that language as well. Employer must provide the following in plain language, a copy of which must be provided to the employee:

A list of all the employee's wage payment options;
Payroll card account's terms and conditions including an itemized list of fees and dollar amounts of those fees; and
Notice that third parties may assess transaction fees.

Consent Requirements

Requires voluntary employee consent obtained without coercion. Consent cannot be condition of hire/continued employment. Consent can be revoked at any time. Employer must change payment method within two full pay periods.
Consent must be obtained after disclosure of the terms and conditions.
Employer must wait seven business days after receiving consent to issue wage payment via the payroll card. During the seven business days, the employee’s consent shall not take effect.
Consent must be provided in English and the primary language of the employee when a template notice and consent in such language is available from the Commissioner.
Consent may be provided and obtained electronically so long as employee is provided ability to view and print consent while at work at no cost and employee is notified of his right to print such materials.

Wage Access Requirements

Program must provide at least one method to withdraw up to the total amount of wages for each pay period or balance remaining on the payroll card without a fee to the employee.
Program must provide local access to one or more ATM that permits withdrawals at no cost to the employee. There must be an ATM within a reasonable travel distance from the employee's home or work.

Fee Restrictions

Program may not charge fees to the employee for the following:

Application, initiation, participation or other action to receive wages
Point-of-sale transactions
Overdraft, shortage, or low balance
Account inactivity
Maintenance
Phone / online customer service
Accessing balance or account info online, via IVR or other automated service, or in-network ATM
Providing written statements, transaction histories, or issuer’s policies
Replacing the payroll card at reasonable intervals (defined elsewhere in the statute as "not less than once per year")
Closing accounts or issuing payment of remaining balance.
Declined transactions at ATMs that do not provide free balance inquiries
Any fee not explicitly identified by type and by dollar amount in the contract between the employer and the issuer or in the terms and conditions of the payroll debit card provided to the employee.

Disclosure Requirements

Employer must provide employees certain disclosures. These disclosures must be provided in English and the primary language of the employee when a template notice and consent in such language is available from the commissioner. Disclosures and consents may be provided and obtain electronically so long as employee is provided ability to view and print notice and consent while at work at no cost and employee is notified of his right to print such materials. Disclosures shall include:

Plain language description of all wage payment options.
Statement that employer may not require the employee to accept wages by payroll debit card or direct deposit.
Statement that the employee may not be charged any fees for services that are necessary for the employee to access his or her wages in full.
A list of locations where employees can access and withdraw wages at no charge to the employees within reasonable proximity to their place of residence or work.

Miscellaneous Requirements

Payroll card may not be linked to any form of credit, including a loan against future pay or a cash advance on future pay (doesn’t prohibit issuer from covering an occasional inadvertent overdraft transaction if there is no charge to employee).
Employer may not pass on any of its own costs associated with a payroll card. Employers may not receive any kickback or financial remuneration from the issuer, sponsor, or third party for delivering wages by payroll debit card.
Agreement between employer and issuer must require that the funds on a payroll card do not expire. The agreement may provide that the account be closed for inactivity provided that the issuer gives reasonable notice to the employee and the remaining funds are refunded within 7 days.
At least 30 days before any change in terms, employer must provide written notice in plain English in the employee’s primary language or in a language the employee understands in at least 12 point font of any change including any change in the itemized list of fees. If the issuer charges the employee any new or increased fees before 30 days after the date the employer has provided the employee with written notice of the changes, the employer must reimburse the employee for the amount of that fee.

Consent Requirements

Employee must voluntarily consent in writing after receiving required disclosures. Consent may not be condition of hire / continued employment.
Employee must be able to revoke consent at any time without penalty.

Disclosure Requirements

Employer must provide written disclosure of at least 10 point font, a copy of which must be in employee's primary language or language the employee understands. Disclosure must include:

All the employee's wage payment options
Terms and conditions of the payroll card account option, including a complete list of all known fees
Notice of whether third parties may assess fees.

Wage Access Requirements

The employee must be able to conduct at least three free withdrawals from the payroll card each pay period. One of the withdrawals must allow full amount of the balance at a federally insured depository institution or other location convenient to the place of employment.

Program Requirements

Payroll card must be branded-type payroll card that (i) can be used at PIN-based or signature-based outlet and (ii) to the extent possible, prevents withdrawals in excess of the account balance and prevents account being overdrawn. Non-branded may be issued for temporary purposes but shall not be valid for more than 60 days
None of the employer’s costs may be passed on to the employee. Employer may not receive any financial remuneration for using the pay card at the employee’s expense.
Card shall not be linked to any form of credit, including loan against future pay or cash advance.
Employers obligations cease 30 days after termination of employment so long as payroll card account is individually owned by the employee.
Upon termination of employment, employer shall notify the financial institution of the change in relationship. Financial institution shall provide employee with a written statement in plain language describing a full list of fees / obligations incurred by continuing relationship with the financial institution.
Program must provide for one free replacement payroll card per year at no cost before the expiration date, unless the card has been inactive for at least 12 months or employee no longer employed by employer.
At least 21 days before any change takes effect, the employer must provide the employee with written notice in plain language in 10 point font: (i) any change to terms and conditions including any fee changes (ii) the employee’s right to discontinue receipt of wages by payroll card account at any time without penalty.

Fee Restrictions

Program may not charge a fee for:

first written transaction history each month requested by employee.
initiation, loading, or participation, except a fee may be charged to replace a lost, stolen, or damaged payroll card.