News & Resources


APA Updates Research on Payroll Cards

BY: APA Staff | 03/09/18

Back in 2008, the APA’s Payroll Cards Subcommittee of the Government Relations Task Force (GRTF) wrote a white paper that described the way states recognized and regulated payroll cards. The authors hoped the paper might help state legislators better understand the nature of this payment method so they could regulate it effectively and appropriately.

The subcommittee has now updated the paper to further this goal. The new white paper, Regulation of Payroll Card Accounts: A Guide for Policymakers (With Model Payroll Card Legislation), February 2018, is a useful guide for those interested in payroll cards. It contains comprehensive information about payroll cards and addresses the following topics:
• What are payroll cards?
• The benefits of payroll cards for both employees and employers
• Common misconceptions about payroll cards
• Recognition of payroll cards as a permissible method of wage payment
• Federal and state law regulation of payroll cards (including the APA’s position on common payroll card provisions)

At the end of the paper is the APA’s model payroll card legislation. APA encourages state policymakers to consider this language, which takes into consideration the interests of both employers and their employees, and has as its goal ensuring that payroll cards remain a beneficial and viable wage payment option. 

For more information, read the Government Corner column in March 2018 PAYTECH, APA Updates Research to Help Payroll Card Understanding.