Texas Employers Can Now Use Payroll Cards without Employee Initial Consent

September 4, 2019|

With the passage of HB 2240, as of September 1, 2019, Texas employers can pay their employees with payroll debit cards without receiving the consent of their employees first.

Before the passing of HB 2240, Texas employers had to receive permission from their employees before paying wages through payroll cards. Now, under the new law, employers looking to adopt payroll debit cards as a payment method must inform their workforce 60 days prior to the enactment. The information provided to employees must include:

  • A written notice outlining the employer’s intention to pay via this method
  • A document listing all the fees associated with payroll debit card usage
  • A form allowing an employee to opt-out of this payment method

For employees hired after the adoption of a payroll card payment plan, they must receive the notice and documents no later than their first day of work.

For more information, see the America Payroll Association’s update.

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