‘(a) Required Disclosures- Any employer who pays or wishes to pay any employee by means of an electronic payroll card shall comply with the following requirements and provide to each such employee the following disclosures and options at the time the employee is provided the option to enroll in a program providing for payment using such cards:
‘(1) The employee shall be provided the ability to access his or her full wages for the pay period using the electronic payroll card at least once each period, without any additional fee, and shall be provided the option of checking the balance available through the electronic payroll card through an automated telephone system or through the Internet or by other electronic means.
‘(2) All the terms and conditions governing the use of the electronic payroll card, including any permissible fees associated with such cards, shall be disclosed to the employee in a clear, written manner and in the language typically used by the employer to communicate with the employee.
‘(3) No fees may be assessed to the employee for ordinary use of the electronic payroll card, including for participation, initiation, adding funds to the card, checking the balance on the card or other account maintenance activities, inactivity or dormancy, low balance, declined transaction, or request to obtain the balance on the card by check in order to close out the card.
‘(4) The employer shall maintain the payroll funds that are accessible by means of the electronic payroll card only in an insured depository institution (as defined section 3 of the Federal Deposit Insurance Act) or an insured credit union (as defined in section 101 of the Federal Credit Union Act), in an account or accounts for which the Federal Deposit Insurance Corporation or the National Credit Union Administration, respectively, provides pass-through deposit insurance based on the interest of each employee participating in the electronic payroll card program. The full amount of funds made available to each employee through an electronic payroll card shall be guaranteed by the employer.
‘(5) Any funds made available through the electronic payroll card may not expire. If the electronic payroll card expires, the employee shall be provided the option to terminate his or her enrollment in the program or to re-enroll and be issued a new card without any fee. Any balance remaining on the expired card must be transferred in full to the newly issued card.
‘(6) The employer is required to offer the employee the option of payment through direct deposit to a savings or checking account of the employee’s choosing in lieu of payment through an electronic payroll card.
‘(7) The employer may not pay an employee’s final payment or any severance payment to any employee whose employment with the employer is discontinued.
‘(8) An employee may not be subject to termination of employment for opting not to participate in any electronic payroll card program. Consent to participate in any such program shall not be a condition of employment at the time of hiring.
‘(b) Definition- As used in this section, the terms ‘electronic payroll card’ and ‘card’ mean an access mechanism, including a prepaid card, code, or device, issued to an employee by an employer, or other entity by arrangement with the employer, through which an employer provides an employee access to his or her wages.’.
U.S. Congress - Text of H.R.2125 as Introduced in House Electronic Paycard Protection Act of 2011
