Payroll Debit Card Laws by State and Municipality

Author: Alice Gilman

Payroll debit cards (also sometimes called paycards) may be used to pay employees' wages electronically. A payroll debit card 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 payroll debit cards and other types of electronic methods of wage payment to employees (e.g., direct deposit).

Most states have adopted 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 payroll debit card 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 payroll debit card law or, in jurisdictions that do have a law, there is no provision on the particular issue.