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Texas Paycard Bill Becomes Law With Support From APA

BY: APA Staff | 06/13/19

Effective September 1, 2019, Texas will permit the use of payroll cards and allow employers to make electronic payment the default method of paying wages provided certain conditions are met. APA has expressed its support for this paycard legislation through oral and written testimony [H.B. 2240, L. 2019].

Employer Requirements

Employers must follow certain requirements regarding paycards. Not later than the sixtieth day before the date of the first electronic funds transfer (EFT) to the payroll card account (or first day of work for an employee hired after the employer adopts the payroll card account plan), the employer must:

  • Notify the employee in writing regarding the employer’s use of a payroll card account plan and provide the employee with a complete list of fees in English (or in another language if the employer offers a payroll card account to an employee in another language).
  • Provide a form to the employee that may be used to request an alternate form of payment if the employee elects to opt out of the payroll card plan.
  • Obtain from the employee any information required by the payroll card account issuer that is necessary to implement the EFT.

If an employee requests an alternate form of payment, the employer must pay an employee’s wages in an alternate form as soon as is practical – but no later than the first payday after the thirtieth day after the employee makes the request.

APA Support

On April 11, APA member Emma Jackson, CPP, the Government Liaison Officer for the Alamo Chapter of the APA, testified before the Texas Senate Committee on Natural Resources and Economic Development in favor of a similar paycard bill. Earlier this year, APA submitted written testimony expressing its support for H.B. 2240 to the Texas House Committee on International Relations and Economic Development.

Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.