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State Regulations for Payroll Cards: HI, ID, IL, IN, IA, KS, KY, LA

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Paycard Laws Map

If you missed our other paycard legislation updates:

Arkansas, Arizona, Alaska, Alabama and California

Georgia

Rhode Island

Illinois

Colorado, Connecticut, Delaware, Florida, Georgia

Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky and Louisiana Paycard Payroll Laws:

Legislation allowing payment via paycard is becoming increasingly common across the U.S. More states than ever are formally recognizing the system that does away with the paper paycheck in favor of the payroll card to streamline payroll and make it easier for employees to access their wages, particularly un- and underbanked workers. As is often the case, technology moves quickly, and government agencies are still drafting legislation for payroll card systems. Legislation regarding payroll cards varies widely from state to state. We've summarized what matters to payroll providers from each of the state laws. Read on for our overview of what you need to know about paycard legislation in Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky and Louisiana.

Hawaii

In addition to paycards, employers must also provide the option to be paid by bank account direct deposit or paper checks, and explain all paycard fees to employees. Paycards must offer at least one no-cost bank teller withdrawal per pay period, in addition to three no-cost withdrawal methods per pay period. Employers must also give employees a written or electronic statement of their earnings and withholdings. Find more information on Hawaii paycard legislation here

Idaho

There is no specific paycard legislation in Idaho. However, employees must provide written consent to recieve direct deposit of any kind. 

Illinois

In Illinois, employers must obtain written employee consent to pay via payroll card. Employers must also provide an itemized paycard fee schedule and explain third party (ATM) fees. In addition to offering direct deposit and paycards, employers must also offer payment via check or cash. Payroll cards must offer at least one no-cost bank teller withdrawal once every two weeks, one no-cost paper statement per month, two no-cost declined transactions per month, and no-cost phone balance inquiries. Inactivity charges must not take effect until there has been at least one year of inactivity. Find more information on Illinois paycard legislation herehere and here

Indiana

Though employers can mandate that employees be paid via direct deposit, there is no specific paycard legislation in Indiana.

Iowa

Iowa employers must obtain written employee consent and provide one no-cost bank teller withdrawal per pay period in order to pay employees via a payroll card. Employers must also give employees a written or electronic statement of their earnings and withholdings. Find more information on Iowa paycard legislation here.

Kansas

In Kansas, employers can mandate that employees be paid via direct deposit. Paycards must offer one no-cost bank teller withdrawal per pay period, and if an employee’s wage deposit amount is greater than the maximum withdrawal limit, the paycard must allow multiple bank teller withdrawals at no cost to allow the entire amount of wages to be withdrawn. Find more information on Kansas paycard legislation here.

Kentucky 

Though employers can mandate that employees be paid via direct deposit, there is no specific paycard legislation in Kentucky.

Louisiana

Though employers can mandate that employees be paid via direct deposit, there is no specific paycard legislation in Louisiana.

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