Payroll Cards

News & Analysis as of

Retailer - Fall 2014

Counting the Cost of Payroll Cards: Are they Worth it for Employers? Retailers, as well as other employers, have grown to rely on payroll cards to compensate employees who may not have bank accounts. What are the legal risks...more

Recent Issues Raised Regarding Payment of Seafarers Via Payroll Cards

We understand that some questions regarding the payment of seafarers’ wages through payroll cards were raised during the first meeting of the Special Tripartite Committee established by the Governing Body of the International...more

New Pregnancy Accommodation and Payroll Card Laws Coming To Illinois

In the run up to Labor Day, Illinois Gov. Pat Quinn signed two public acts into law that significantly impact Illinois employers. The first is a major extension of the Human Rights Act that enhances pregnancy discrimination...more

New Illinois Laws: Payroll Cards and Protection for Pregnant Employees

Governor Quinn signed two laws in August that impact Illinois employers — one that expands protections for pregnant applicants and employees and one that sets new requirements for payroll debit cards....more

Illinois Becomes Latest State to Crack Down on Pay Card Abuses

Last week, Illinois Governor Pat Quinn signed House Bill 5622, which amended the Illinois Wage Payment and Collection Act (IWPCA) to explicitly provide employers with the option of paying employees through a payroll card, but...more

Illinois Permits Employer Use of Payroll Cards

On August 6, 2014, Illinois Governor Pat Quinn signed HB5622 into law, amending the Illinois Wage Payment and Collection Act (IWPCA) to permit employers to pay employees using payroll cards. Up until now, the IWPCA only...more

Use of Payroll Cards in Illinois to Come Under Increased Statutory Scrutiny: Gov. Quinn Signs New Amendments into Law on Aug. 6,...

Effective Jan. 1, 2015, employers in Illinois will have to follow new requirements in order to pay wages using payroll cards. The Illinois Wage Payment and Collection Act (IWPCA) currently provides for wage payment by check...more

Employer Obligations Under the New Payroll Card Law

On Wednesday, August 6, 2014, Governor Quinn signed House Bill 5622 amending the Illinois Wage Payment and Collection Act (IWPCA) and providing employers with the option of paying employees through a payroll card. While the...more

Important Changes Coming for Illinois Employers

Beginning January 1, 2015, Illinois state law may require Illinois employers employing one or more employees to provide "reasonable accommodations" to part-time and full-time employees, probationary employees, new employees,...more

Proposed Amendments To New Jersey Wage Payment Law Would Permit Payment By Debit Cards

On November 18, 2013, the Assembly introduced a bill (A4424) amending the current wage payment law to permit employers to pay wages by deposit in a payroll debit card account. This practice...more

Employer-Selected Payroll Cards Cannot Be The Sole Method Of Paying Wages

Many employers have implemented direct deposit payroll systems to reduce the transaction costs associated with paper payroll checks and the risks of the loss or theft of paper checks. A payroll card is an increasingly popular...more

Financial Institutions and Employers Cannot Mandate that Wages be Deposited to Payroll Card Accounts

Payroll card accounts have many benefits. The cards are a helpful option for employees who do not have checking accounts, and many banks have offered financial incentives to employers who choose their institution's card to...more

Can the CFPB Regulate Payroll Cards?

As credit card issuers have been subjected to increasing restrictions on the interest and fees they can charge consumers, they have found a new and lucrative sector in which to market their debit cards: payroll. The Federal...more

Depositing employee wages on payroll card accounts may be convenient, but consumer protection agency condemns mandatory wage...

The Electronic Fund Transfer Act and Regulation E (which implements the Act) apply to payroll card accounts. In a memo issued on September 12, 2013, the Consumer Financial Protection Bureau (CFPB) clarified that employers...more

Much Ado About Payroll Cards

In my last blog post, “To Fee or Not to Fee—The Pros and Cons of Payroll Cards,” I discussed the growing popularity of payroll cards and several U.S. senators’ plea for guidance on this burgeoning pay practice. Perhaps in...more

Federal and State Authorities Continue Scrutiny of Payroll Cards

With the growing popularity of payroll cards, employers that utilize them, or are considering implementing them in the future, must be aware of the potential benefits and risks involved. Employers in virtually every...more

Banking & Financial Services E-Note - September 30, 2013

In This Issue: - NCUA Drafts Rule Subjecting Big Credit Unions to Stress Tests Report Finds FDIC Has Filed as Least 32 D&O Lawsuits This Year - CFPB Cracks Down on "Furnishers" Giving Credit Report Information -...more

CFPB Weighs In On Employer Use Of Payroll Cards

In a recent blog post, we discussed the legal issues associated with employer use of payroll debit cards in lieu of printed paychecks. We concluded that because of the lack of federal and state regulatory guidance on the...more

Potential Problems With Payroll Cards

For several years now, the use of payroll cards has been an emerging trend as a mechanism for paying employees their wages. A payroll card is a payment method that allows employers to pay wages to their employees via a...more

Dodd-Frank News: September 2013: Dodd-Frank Wall Street Reform And Consumer Protection Act Update

In This Issue: - Recent Cases ..CFPB Involvement in Litigation ..Say-On-Pay Voting ..Constitutional Challenges to Dodd-Frank ..TILA Rescission ..Dodd-Frank Amendment to the Securities and...more

CFPB Bulletin Warns Employers Against Exclusive Use of Payroll Cards

On September 12, the Consumer Financial Protection Bureau (CFPB) published a bulletin reminding employers that they cannot require their employees to receive wages on a payroll card. The bulletin also explains some of the...more

CFPB Issues Guidance Bulletin on Employer Payroll Cards

The CFPB issued a guidance bulletin warning employers of the prohibition on requiring employees to use payroll cards. Payroll cards are regulated by the Electronic Fund Transfer Act and its implementing regulation, Regulation...more

CFPB Warns Employers on Required Use of Payroll Cards

The Consumer Financial Protection Bureau has issued a bulletin warning employers that they cannot require employees to receive their wages on payroll cards. The bulletin appears to respond to the explosive growth in the use...more

Corporate and Financial Weekly Digest - September 13, 2013

In this issue - - Federal Agencies Seek Comment on Joint Proposed Rule Regarding Credit Risk Retention - SEC Grants Request for No-Action Relief with Respect to Multi-Day Pre-Fail and Post-Fail Credit Under Rule...more

CFPB Bulletin Addresses "Payroll Card Accounts"

A statement of some federal-law limitations and requirements relating to the increasingly popular practice of compensating employees via the use of "pay cards" came from an atypical direction on September 12....more

42 Results
|
View per page
Page: of 2