Bill Text: TX HB2240 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the payment of wages by an employer through a payroll card account.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2019-05-29 - Effective on 9/1/19 [HB2240 Detail]
Download: Texas-2019-HB2240-Enrolled.html
H.B. No. 2240 |
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relating to the payment of wages by an employer through a payroll | ||
card account. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 61.001, Labor Code, is amended by adding | ||
Subdivision (6-a) to read as follows: | ||
(6-a) "Payroll card account" means an account that is | ||
directly or indirectly established by an employer into which each | ||
participating employee's wages, salary, or other form of | ||
compensation is deposited on a recurring basis and for which the | ||
employee receives a payroll card to access the funds in the account. | ||
SECTION 2. Section 61.016(a), Labor Code, is amended to | ||
read as follows: | ||
(a) An employer shall pay wages to an employee: | ||
(1) in United States currency; | ||
(2) by a written instrument issued by the employer | ||
that is negotiable on demand at full face value for United States | ||
currency; or | ||
(3) by the electronic transfer of funds to: | ||
(A) a financial institution account designated | ||
by the employee; or | ||
(B) a payroll card account established by the | ||
employer. | ||
SECTION 3. Section 61.017, Labor Code, is amended by adding | ||
Subsections (d) and (e) to read as follows: | ||
(d) An employer may elect to pay wages to an employee | ||
through a payroll card account plan that is linked to a federally | ||
insured financial institution and uses electronic funds transfer to | ||
deposit wages in the employee's payroll card account. An employer | ||
who elects to pay wages through a payroll card account shall: | ||
(1) not later than the 60th day before the date of the | ||
first electronic funds transfer to the payroll card account of an | ||
affected employee or, for an employee hired after the date the | ||
employer adopts the plan, not later than the employee's first day of | ||
work: | ||
(A) notify the employee in writing regarding the | ||
employer's adoption of a payroll card account plan; and | ||
(B) provide to the employee: | ||
(i) a complete list of all fees associated | ||
with the employee's payroll card account in English, or, if the | ||
employer offers a payroll card account to an employee in a language | ||
other than English, in that other language; and | ||
(ii) a form the employee may use to request | ||
an alternate form of payment if the employee elects to opt out of | ||
the payroll card account plan; and | ||
(2) obtain from the employee any information required | ||
by the payroll card account issuer that is necessary to implement | ||
the electronic funds transfer. | ||
(e) If an employee requests an alternate form of payment | ||
under Subsection (d)(1)(B)(ii), the employer shall pay the | ||
employee's wages in the alternate form as soon as practicable, but | ||
not later than the first payday occurring after the 30th day after | ||
the employee requests the alternate form of payment. | ||
SECTION 4. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2240 was passed by the House on May 3, | ||
2019, by the following vote: Yeas 140, Nays 0, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2240 was passed by the Senate on May | ||
15, 2019, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |