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

AN ACT
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