This week, the Senate approved legislation aimed at clarifying the law regarding payroll cards. A payroll card — which is similar to a debit card — is an increasingly popular way to pay employees.
Legislators recently heard from Iowans who came to the Statehouse to tell their stories. We learned that many Iowans don’t have a choice in how they are paid and may incur high fees when paid by payroll card. Nobody should have to pay a fee to collect their wages.
Senate File 460 is a simple, common sense bill that aims to protect the pay and rights of employees.
SF 460 requires an employee to agree voluntarily to payment via a payroll card. The agreement must be in writing, and the employee must have the option to withdraw all the wages due in a pay period without incurring a fee. The bill also requires the employer to keep the records of consent and to provide another payment method if an employee requests it at a later time.