SB 415

Under current law, if an employer pays wages in a form other than cash, the

wages must be payable at the employer's office, if within the state, at any bank within

the state, or at a place of business within the county in which the work was

performed.

This bill permits an employer, including the state, to pay an employee his or her

wages, salary, or other compensation in the form of an electronic fund transfer to a

payroll card account, but only if payment of that compensation in that form is

authorized by a collective bargaining agreement or by an agreement that is arrived

at before the work is performed, is entered into by the employee knowingly and

voluntarily and not as a condition of employment, and is affirmed by a written or

otherwise verifiable record maintained by the employer.

Under current regulations issued under the federal Electronic Fund Transfer

Act, a payroll card account is defined as "an account that is directly or indirectly

established through an employer and to which electronic fund transfers of the

consumer's wages, salary, or other employee compensation (such as commissions)

are made on a recurring basis, whether the account is operated or managed by the

employer, a third-party payroll processor, a depository institution, or any other

person."