[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2125 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2125

   To amend the Fair Labor Standards Act of 1938 to require certain 
disclosures by employers who use electronic payroll cards to pay their 
                               employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 2011

   Mr. Baca introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
   To amend the Fair Labor Standards Act of 1938 to require certain 
disclosures by employers who use electronic payroll cards to pay their 
                               employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Electronic Paycard Protection Act of 
2011''.

SEC. 2. DISCLOSURES AND OPTIONS RELATED TO ELECTRONIC PAYROLL CARDS.

    (a) In General.--The Fair Labor Standards Act of 1933 is amended by 
adding after section 6 the following new section:

``SEC. 6A. DISCLOSURES AND OPTIONS RELATED TO ELECTRONIC PAYROLL CARDS.

    ``(a) Required Disclosures.--Any employer who pays or wishes to pay 
any employee by means of an electronic payroll card shall comply with 
the following requirements and provide to each such employee the 
following disclosures and options at the time the employee is provided 
the option to enroll in a program providing for payment using such 
cards:
            ``(1) The employee shall be provided the ability to access 
        his or her full wages for the pay period using the electronic 
        payroll card at least once each period, without any additional 
        fee, and shall be provided the option of checking the balance 
        available through the electronic payroll card through an 
        automated telephone system or through the Internet or by other 
        electronic means.
            ``(2) All the terms and conditions governing the use of the 
        electronic payroll card, including any permissible fees 
        associated with such cards, shall be disclosed to the employee 
        in a clear, written manner and in the language typically used 
        by the employer to communicate with the employee.
            ``(3) No fees may be assessed to the employee for ordinary 
        use of the electronic payroll card, including for 
        participation, initiation, adding funds to the card, checking 
        the balance on the card or other account maintenance 
        activities, inactivity or dormancy, low balance, declined 
        transaction, or request to obtain the balance on the card by 
        check in order to close out the card.
            ``(4) The employer shall maintain the payroll funds that 
        are accessible by means of the electronic payroll card only in 
        an insured depository institution (as defined section 3 of the 
        Federal Deposit Insurance Act) or an insured credit union (as 
        defined in section 101 of the Federal Credit Union Act), in an 
        account or accounts for which the Federal Deposit Insurance 
        Corporation or the National Credit Union Administration, 
        respectively, provides pass-through deposit insurance based on 
        the interest of each employee participating in the electronic 
        payroll card program. The full amount of funds made available 
        to each employee through an electronic payroll card shall be 
        guaranteed by the employer.
            ``(5) Any funds made available through the electronic 
        payroll card may not expire. If the electronic payroll card 
        expires, the employee shall be provided the option to terminate 
        his or her enrollment in the program or to re-enroll and be 
        issued a new card without any fee. Any balance remaining on the 
        expired card must be transferred in full to the newly issued 
        card.
            ``(6) The employer is required to offer the employee the 
        option of payment through direct deposit to a savings or 
        checking account of the employee's choosing in lieu of payment 
        through an electronic payroll card.
            ``(7) The employer may not pay an employee's final payment 
        or any severance payment to any employee whose employment with 
        the employer is discontinued.
            ``(8) An employee may not be subject to termination of 
        employment for opting not to participate in any electronic 
        payroll card program. Consent to participate in any such 
        program shall not be a condition of employment at the time of 
        hiring.
    ``(b) Definition.--As used in this section, the terms `electronic 
payroll card' and `card' mean an access mechanism, including a prepaid 
card, code, or device, issued to an employee by an employer, or other 
entity by arrangement with the employer, through which an employer 
provides an employee access to his or her wages.''.
    (b) Violation and Penalties.--Section 15(a)(2) of such Act (29 
U.S.C. 215(a)(2)) is amended by inserting ``, section 6A,'' after 
``section 6''.
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