Just prior to adjournment for the year, the California legislature passed S.B. 931—a bill to amend the Labor Code to regulate the issuance of payroll cards. The bill represents the California legislature’s second attempt at passage of a payroll card bill. The enrolled bill has been presented to Governor Brown and must receive his signature by October 9, 2011.

If enacted, S.B. 931 would permit an employer to pay wages to an employee using a payroll card only if the employer does all of the following...