Bill S.1008

SENATE DOCKET, NO. 1052 FILED ON: 1/19/2017

SENATE . . . . . . . . . . . . . . No. 1008

By Ms. Donoghue, a petition (accompanied by bill, Senate, No. 1008) of Eileen M. Donoghue for legislation to protect employees who receive wages by payroll debit cards. Labor and Workforce Development.

The Commonwealth of Massachusetts

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In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act protecting employees who receive wages by payroll debit cards.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

Chapter 149 of the General Laws is hereby amended by inserting after section 148D the following new section:-

Section 148E. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Payroll debit card,” a card that provides access to an account with a financial institution established directly or indirectly by the employer, and to which transfers of the employee’s wages are made on an isolated or recurring basis.

“Consent,” an express, advance, written authorization given voluntarily by the employee and only given following receipt by the employee of written notice of all terms and conditions of the method of payment. Consent may be withdrawn at any time, provided however, that the employer shall be given a reasonable period of time, but no longer than two full pay periods, to finalize such change.

“Employee”, as provided in subsection (h) section 1 of chapter 151A.

“No cost,” an employee can access his or her wages, in full, without encumbrances, costs, charges, or fees.

“Local access” the employee is provided with access to his or her wages, at a facility or machine which is located within a reasonable travel distance to the employee’s work location or home, and without unreasonable restraint by the employer or its agent.

“Reasonable interval,” not less frequently than annually.

(b) An employer who uses methods of payments other than cash or check shall provide employees with a written notice that identifies the following:

(1) a plain language description of all of the employee’s options for receiving wages;

(2) a statement that the employer may not require the employee to accept wages by payroll debit card;

(3) a statement that the employee may not be charged any fees for services that are necessary for the employee to access his or her wages in full; and

(4) a list of locations where employees can access and withdraw wages at no charge to the employees within reasonable proximity to their place of residence or place of work.

(c) An employer shall obtain consent from an employee in writing before paying the employee’s wages by payroll debt card and shall ensure that:

(1) It obtains the employee’s informed consent without intimidation, coercion, or fear of adverse action by the employer for refusal to accept payment of wage by payroll debit card; and

(2) does not make payment of wage by payroll debit card a condition of hire or of continued employment.

(d) The written notice and written consent may be provided and obtained electronically so long as an employee is provided with the ability to view and print both the notice and the consent while the employee is at work and without cost to the employee, and the employee is notified of his or her right to print such materials by the employer through such electronic process.

(e) The written notice and written consent shall be provided in English and in the primary language of the employee when a template notice and consent in such language is available from the commissioner.

(f) An employer and its agent shall not engage in unfair, deceptive or abusive practices in relation to the method or methods of payment of wages. No employer or his agent, or the officer or agent of any corporation, shall discharge, penalize or in any other manner discriminate against any employee because such employee has not consented to receive his or her wages through payroll debit card.

(g) When paying wages by payroll debit card, an employer shall ensure that it receives consent from the employee at least seven business days prior to taking action to issue the payment of wages by payroll debit card.

(h) An employer shall not deliver payment of wages by payroll debit card unless each of the following is provided:

(1) local access to one or more automated teller machines that offers withdrawals at no cost to the employee;

(2) at least one method to withdraw up to the total amount of wages for each pay period or balance remaining on the payroll debit card without the employee incurring a fee.

(i) An employer or agent shall not charge, directly or indirectly, an employee a fee for any of the items listed in this subsection. Inclusion in this subsection does not impose any separate or independent obligation to provide services, nor does it relieve an employer or agent from compliance with this section or any federal or state law or regulations:

(1) Application, initiation, loading, participation or other action necessary to receive wages or to hold the payroll debit card;

(2) point of sale transactions;

(3) overdraft, shortage, or low balance status;

(4) account inactivity;

(5) maintenance;

(6) telephone or online customer service;

(7) accessing balance or other account information online, by Interactive Voice Response through any other automated system offered in conjunction with the payroll debit card, or at any ATM in network made available to the employee;

(8) providing the employee with written statements, transaction histories or the issuer’s policies;

(9) replacing the payroll debit card at reasonable intervals;

(10) closing an account or issuing payment of the remaining balance by check or other means; or

(11) declined transactions at an Automated Teller Machine that does not provide free balance inquiries; and

(12) any fee not explicitly identified by type and by dollar amount in the contract between the employer and the issuer or in the terms and conditions of the payroll debit card provided to the employee.

(j) An employer or its agent shall not deliver payment of wages by payroll debit card account that is linked to any form of credit, including a loan against future pay or a cash advance on future pay. Nothing in this subsection shall prohibit an issuer from covering an occasional inadvertent overdraft transaction if there is no charge to the employee.

(k) An employer shall not pass on any of its own costs associated with a payroll debit card account to an employee, nor may an employer receive any kickback or other financial remuneration from the issuer, card sponsor, or any third party for delivering wages by payroll debit card.

(l) An employer or its agent shall not deliver payment of wages by payroll debit card unless the agreement between the employer and issuer requires that the funds on a payroll debit card shall not expire. Notwithstanding this requirement, the agreement may provide that the account may be closed for inactivity provided that the issuer gives reasonable notice to the employee and that the remaining funds are refunded within seven days.

(m) At least thirty days before any change in the terms and conditions of a payroll debit card takes effect, an employer must provide written notice in plain language, in the employee’s primary language or in a language the employee understands, and in at least 12-point font of any change to the terms or conditions of the payroll debit card account including any changes in the itemized list of fees. If the issuer charges the employee any new or increased fee before thirty days after the date the employer has provided the employee with written notice of the change in accordance with the provisions of this subsection, the employer must reimburse the employee for the amount of that fee.

(n) Where an employee is covered by a valid collective bargaining agreement that expressly provides the method or methods by which wages may be paid to employees, an employer must also have the approval of the union before paying the employee by payroll debit card.

Name:	District/Address:
Eileen M. Donoghue	First Middlesex