Connecticut Passes Paycard Law

On June 7, 2016, the state of Connecticut enacted Public Act No. 16-125 to recognize payroll cards as a permissible form of wage payment. After several attempts to enact legislation to clarify the law, and years of uncertainty for employers, Public Act No. 16-125 now authorizes payroll cards as a method of wage payment for employees. It also establishes a number of consumer protections for employees who elect to receive their wages by payroll card, as well as new requirements for wage statements.

The rules for paycard use contain some that are common to other states’ proposed and final laws: Use must be voluntary and authorized by the employee; full value for net pay must be given each period without fee; the employer must disclose all terms and conditions of the program prior to employee enrollment; balance inquiries and statements must be made available to users; and card issuer ATM’s must be available for use in the state.

Effective October 1, electronic paystubs are now explicitly permitted under Connecticut law.  For more information see ADP’s Eye on Washington here.

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