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Paying workers with debit cards isn’t as easy as it seems

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in Centerpiece,Office Management,Payroll Management

hand holding credit cardMost employers long ago started encouraging employees to ditch paper checks in favor of direct deposit. Now more employers are pushing their workers to receive pay via debit cards—called paycards—that work just like ATM bank cards.

Trouble is, not all employees want to be paid that way—and the law is often on their side.

THE LAW: Federal law requires employers that wish to pay employees with paycards to provide alternatives. Those alternatives often depend on state payroll laws.

Employees must consent to paycards in California, Colorado, Delaware, Florida, Iowa, Maryland, Maine, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Oregon, Texas, Utah, Vermont and West Virginia.

Employers in Arizona, Kansas, Michigan, North Carolina, Tennes-see and Virginia may mandate paycard use, with some restrictions.

WHAT’S NEW: Alarmed by reports of banking fees eating into low-wage earners’ paychecks...(register to read more)

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