As we teased a couple of months ago, there’s good news for Georgia employers that still begrudgingly pay some employees by check. Earlier this week, Governor Kemp’s office announced he signed into law Georgia House Bill 373, which amends the wage payment statute to allow employers to achieve 100% electronic wage payment.
A bit of background: In 2015, Georgia amended its wage payment statute specifically to permit the payment of wages via payroll card with the consent of the employee, but required employers to provide employees with opt-out forms through which they could switch to payment by check. Since employees could demand payment via a check, employers were never able to realize the efficiencies associated with 100% electronic wage payment.
House Bill 373 changes that. Employers are no longer required to provide opt-out forms, and employees no longer have the ability to demand their wages via check. Reg E still prohibits employers from requiring employees to accept their wages via payroll card, but now employers can let employees choose between payroll cards and direct deposit without providing them with a paper check option.
Georgia’s wage payment statute still requires employers to obtain employee consent to pay via direct deposit, but employers can default workers who don’t provide direct deposit information to a payroll card.
For all the payroll card news that’s fit to blog, check out our Payroll Card Blog. While you’re there, make sure to subscribe to receive updates. We’ll let you know if and when the Texas bill goes into effect and when we get a resolution to the saga in New York.