1.This Act may be cited as the
Electronic Paycard Protection Act of
2011
.
2.Disclosures and
options related to electronic payroll cards
(a)The Fair Labor
Standards Act of 1933 is amended by adding after section 6 the following new
section:
6A.Disclosures and
options related to electronic payroll cards
(a)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)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)Section 15(a)(2) of such Act (29 U.S.C. 215(a)(2)) is
amended by inserting , section 6A,
after section
6
.