OLR Bill Analysis

HB 5114

AN ACT CONCERNING PAYMENT OF WAGES TO EMPLOYEES BY PAY CARD.

SUMMARY:

This bill requires employers who pay their employees using a pay card (debit card) system to reimburse employees for automated teller machine (ATM) withdrawal fees through the employee's pay card system account. Employers meeting the bill's requirements are not responsible for other account penalties or charges the employee incurs.

Some employers use a pay card instead of a check or a direct deposit system for employees who do not have checking accounts.

The bill defines “pay card” as a card issued by an employer or its payroll service provider to an employee that is linked to an account and credited with the employee's wages at the close of a pay period. A “pay card system” is an electronic pay arrangement in which an employee's wages are credited to an individual bank account that is subject to withdrawal charges and fees and where withdrawals may be made using a debit or pay card at ATMs.

EFFECTIVE DATE: October 1, 2008

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable