Payroll card providers have it a little tougher than many other prepaid card companies. In addition to making sure their programs comply with federal laws and regulation, they also need to fit their programs into a mélange of state laws that govern how workers receive their wages.
The general principle underlying nearly every payroll law is that workers cannot be forced to accept their pay in a way that costs the worker money. The problem is that nearly every state seeks to enforce this principle in different ways. Some states will allow employers to require electronic payments, while other states will mandate that an employee needs to be paid to the penny in cash, if that is what the worker wants.
To help members make sense of all these state laws, NBPCA’s outside regulatory counsel, Baird Holm LLP, has conducted a survey of all 50 state payroll laws that covers whether payroll cards are permitted, what fee restrictions exist, and what state disclosures apply to payroll card programs.
Companies can use this survey to make sure that their programs are ready to cross state lines throughout the United States and to avoid pitfalls as they move into new states.
The price for the survey is $5,000, and a portion of the proceeds will go to support the NBPCA. The picture below gives an overview of what is available. The level of detail provided for each state corresponds to how complicated each state’s laws are. You can purchase the report here.