Vetoed by Governor Jerry Brown, Jr.

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that authorizes employers to pay wages to employees using a payroll card.

Highlights:

• Authorizes employers to pay wages to employees using a payroll card if certain requirements are satisfied including, but not limited to, the following (Sec. 1):
• The employer gives the employee the option of receiving wages by direct deposit, paper check, or payroll card before the employee is asked to select one of these options;
• The employer has provided the employee with a clear and complete itemized payroll card fee schedule which states the dollar amount of all fees;
• The employer does not make participation in the payroll card program a condition of employment; -The payroll card agreement prevents withdrawals in excess of the account balance;
• The funds in the payroll card account do not expire; and
• The payroll card is not linked to any form of credit, including a loan against future wages.

• Requires payroll card contracts to provide all of the following at no cost to the employee (Sec. 1):
• A payroll card with no charges for application, initiation, loading or participation;
• 1 replacement card per year;
• At least 1 withdrawal per pay period from an out-of-network ATM without incurring a fee charged by the issuer of the payroll card;
• A minimum of 4 withdrawals per pay period from an ATM in the issuer's network;
• The ability to withdraw the entire amount of wages stored on the card at least once per pay period;
• The ability to use the payroll card for a minimum of 2 point-of-sale transactions per pay period without incurring a fee charged by the issuer;
• The means to access balance or account information online or through an automated phone system 24 hours a day, 7 days a week; and
• At least 3 telephone calls per month to a live customer service representative.

• Defines "payroll card" as a prepaid card, code, or other device issued or distributed to an employee by an employer through which the employer provides the employee access to his or her wages (Sec. 1).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that authorizes employers to pay wages to employees using a payroll card.

Highlights:

• Authorizes employers to pay wages to employees using a payroll card if certain requirements are satisfied including, but not limited to, the following (Sec. 1):
• The employer gives the employee the option of receiving wages by direct deposit, paper check, or payroll card before the employee is asked to select one of these options;
• The employer has provided the employee with a clear and complete itemized payroll card fee schedule which states the dollar amount of all fees;
• The employer does not make participation in the payroll card program a condition of employment; -The payroll card agreement prevents withdrawals in excess of the account balance;
• The funds in the payroll card account do not expire; and
• The payroll card is not linked to any form of credit, including a loan against future wages.

• Requires payroll card contracts to provide all of the following at no cost to the employee (Sec. 1):
• A payroll card with no charges for application, initiation, loading or participation;
• 1 replacement card per year;
• At least 1 withdrawal per pay period from an out-of-network ATM without incurring a fee charged by the issuer of the payroll card;
• A minimum of 4 withdrawals per pay period from an ATM in the issuer's network;
• The ability to withdraw the entire amount of wages stored on the card at least once per pay period;
• The ability to use the payroll card for a minimum of 2 point-of-sale transactions per pay period without incurring a fee charged by the issuer;
• The means to access balance or account information online or through an automated phone system 24 hours a day, 7 days a week; and
• At least 3 telephone calls per month to a live customer service representative.

• Defines "payroll card" as a prepaid card, code, or other device issued or distributed to an employee by an employer through which the employer provides the employee access to his or her wages (Sec. 1).

Full Bill Text