Paycard Laws by State and Municipality

Author: Alice Gilman

Paycards may be used to pay employees' wages electronically. A paycard is a type of debit card onto which an employee's net wages are loaded by an employer. Federal Regulation E sets the overall rules and minimum standards an employer must follow when offering paycards and other types of electronic methods of wage payment to employees (e.g., direct deposit).

Most states have adopted adopt Regulation E's provisions into their wage payment laws. But many states provide even greater protections to employees than Regulation E, such as requiring that the employer assume liability for any fees it did not disclose to employees.

The following chart summarizes state and municipal requirements regarding wage payment by paycard and the penalties applicable to an employer that fails to comply with the law. Cells marked with "N/A" signify that the jurisdiction does not have a paycard law or, in jurisdictions that do have a paycard law, there is no provision on the particular issue.