Review this exciting guide to some of the recent content additions to Practical Guidance, designed to help you find the tools and insights you need to work more efficiently and effectively. Practical Guidance...
By: Romaine Marshall and Jennifer Bauer , Polsinelli PC This article addresses the broad scope of artificial intelligence (AI) laws in the United States that focus on mitigating risk, and discusses the...
By: Bijan Ghom , Saxton & Stump This article addresses existing deepfake technology and covers topics such as the available platforms to both create and detect deepfakes and the best practices for...
By: Ellen M. Taylor , SLOAN SAKAI YEUNG & WONG LLP THIS ARTICLE ADDRESSES THE BROAD SCOPE OF artificial intelligence (AI) laws in the United States that focus on mitigating risk. AI-driven employment...
By: Jessica Bishop and Sarah Stothart , GOODMANS LLP This checklist provides an overview of key legal considerations attorneys should review when advising clients on negotiating and drafting contracts...
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Payroll cards—also known as payroll debit cards or paycards—are similar to bank debit cards. They are an increasingly popular method for employers to pay wages because they reduce the administrative costs associated with the processing and distribution of live, paper paychecks. Payroll cards can also be attractive to employees, as payroll cards eliminate the hassle and monetary cost sometimes associated with cashing live paychecks.
In a typical payroll card program, the employer chooses a bank or financial institution to issue the cards. Employees who opt for this method of payment establish payroll card accounts with that financial institution. Employers add wages to the payroll cards each pay period. Employees may then use the payroll cards for ATM withdrawals, bank teller withdrawals, debit card purchases, and cash back withdrawals.
As with other accounts, banks sometimes charge fees for the maintenance and use of payroll card accounts. These fees have been the subject of a few recent wage and hour cases and pose some risks for employers who wish to use payroll cards.
To read the full practice note in Lexis Practice Advisor, follow this link.
Kevin E. Vance is a partner with Duane Morris, LLP. His practice focusses on labor and employment litigation and other types of business litigation. Mr. Vance counsels businesses on a wide variety of labor and employment matters and drafts employee handbooks, employment agreements, releases, settlement agreements, and opinion letters. Mr. Vance also represents businesses in ERISA litigation matters and ADA public accommodation lawsuits. In addition to litigation in state and federal courts, he represents businesses before the Equal Employment Opportunity Commission, the National Labor Relations Board, the U.S. Department of Labor, and various state and local agencies. He is a frequent lecturer on labor and employment law topics. Julian A. Jackson-Fannin is an associate in the firm’s Trial Practice Group. Mr. JacksonFannin’s experience includes commercial, construction defect, and employment litigation. Prior to joining Duane Morris, Mr. JacksonFannin served as a law clerk to the Honorable Donald L. Graham of the U.S. District Court for the Southern District of Florida.
For more information on the Fair Labor Standards Act’s (FLSA) minimum wage requirements and state law exceptions, see
> NAVIGATING THE FLSA’S MINIMUM WAGE REQUIREMENTS
RESEARCH PATH: Labor and Employment > Wage and Hour > Compensation > Practice Notes
For an explanation on the FLSA’s overtime requirement and how to calculate the regular rate of pay and overtime rates of hourly employees., see
> COMPLYING WITH THE FLSA’S OVERTIME REQUIREMENTS FOR HOURLY NON-EXEMPT EMPLOYEES
For an analysis of state method of pay laws—including information on state payroll card laws—see the Pay Timing, Frequency, Methods, and Deductions column of
> WAGE AND HOUR STATE PRACTICE NOTES CHART
RESEARCH PATH: Labor & Employment > Employment Litigation > Class and Collective Actions > Practice Notes
For guidance regarding federal law and the timing and frequency of pay, see
> UNDERSTANDING FEDERAL LAW ON TIMING AND FREQUENCY OF PAY
For a summary of laws governing private employers’ use of direct deposit and payroll cards to pay their employees’ wages, see
> DIRECT DEPOSIT AND PAYROLL CARD STATE LAWS CHART
RESEARCH PATH: Labor and Employment > Jurisdictional Considerations > State Charts & Surveys > Practice Notes