Pennsylvania’s Wage Payment and Collection Law requires employers to pay all wages, other than fringe benefits and wage supplements, due employees on regularly scheduled paydays designated in advance by the employer in cash, bank check, or direct deposit. As of May 4, 2017, Pennsylvania employers will have another option to pay employee wages each pay period.
On November 4, 2016, Governor Tom Wolf signed Senate Bill 1265 which amends the banking code to allow employers to use a payroll debit card on which an employer can load an employee’s wages each pay period. The payroll debit cards work like an ATM card but without the employee needing to have a bank account to access the funds. The sponsor of the bill introduced this option to provide an option to employees to avoid the costs of check cashing and money orders for those with little or no access to traditional banking.
The amendment allows for employers to use the payroll debit cards with certain restrictions that are intended to ensure that employees have access to the full amount of their wages, with unlimited, no-cost access to their accounts. Read what these restrictions include at: http://blog.hrusa.com/blog/pennsylvania-employers-can-pay-wages-with-payroll-cards/.