Pennsylvania bill would allow paying staff via debit cards — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Pennsylvania bill would allow paying staff via debit cards

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in Compensation and Benefits,Human Resources

A proposal by Pennsylvania State Sen. Don White, chairman of the Banking and Insurance Committee, would allow employers to pay employees with debit cards rather than paychecks. The legislation would require granting employees free access to all of their wages.

Supporters claim paying by debit card would be a boon to employees who do not have personal checking accounts. They say guaranteeing that employees won’t have to pay fees to access their money helps both employers and employees.

Fees that effectively reduce a worker’s wage below minimum wage could subject the employer to sanctions under the Fair Labor Standards Act.

Several years ago, Pennsylvania be­­­­­­­gan a similar program for those re­ceiv­­ing child support. However, child support recip­­­­i­ents are not guaranteed the full amount of their support and sometimes pay fees to access their money.

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