More And More States Are Targeting Payroll Debit Cards

By Caroline Berdzik, Goldberg Segalla LLP (January 23, 2017, 10:21 AM EST) -- It has become increasingly prevalent for employers to pay their employees with payroll debit cards as an alternative to checks, direct deposit and other methods due to the benefits to both employers and employees. Despite these mutual benefits, many states have enacted legislation that may potentially curtail the use of these cards to pay wages — even though, according to Forbes, an estimated 5.8 million workers were paid through these cards four years ago, and that number is expected to hit 10.8 million this year. In particular, many employers in retail and fast food establishments use this method of payment. With the recent scrutiny being placed on these sectors, it is no surprise that certain states like New York and Pennsylvania have put into effect more stringent requirements and parameters for employers to use payroll debit cards to pay their employees....

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