Bill Text: TX HB2240 | 2019-2020 | 86th Legislature | Enrolled

Texas House Bill 2240 (Prior Session Legislation)

Bill Title: Relating to the payment of wages by an employer through a payroll card account.

Sponsorship: 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