Fair Treatment of Payroll Card Accounts Under State Unclaimed Property Laws
Over 5.9 million Americans use payroll card accounts to receive their wage payments. Payroll Card Accounts are non-traditional deposit accounts held at a financial institution that allows employees without traditional bank accounts and those with limited access to traditional financial services to enjoy the convenience and security that their coworkers experience with direct deposit. Without Payroll Card Accounts, many underserved workers are forced to operate outside of the financial mainstream and are unable to enjoy the benefits of electronic wage payment. Thus, because Payroll Card Accounts are distinct from wages or checks, they should not be treated in the same manner as wages or checks under unclaimed property regulations.