new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For the purposes of this
section, the following terms shall have the meanings given them.
new text end

new text begin (a) "Payroll card" means a card issued to an employee to
access funds from the employee's payroll card account, in a
manner consistent with this section.
new text end

new text begin (b) "Payroll card account" means an arrangement whereby an
employer pays each participating employee's wages by making an
electronic fund transfer to an account. Each participating
employee must own the portion of the payroll card account that
corresponds to the employee's wages, and participating employees
receive a payroll card to access their funds.
new text end

new text begin (c) "Payroll card issuer" means an employer that
establishes payroll card accounts for paying wages to its
employees. The term also includes a bank or other entity that
issues a payroll card on behalf of an employer. An agreement
between the employer and the bank may specify which party is
responsible for the requirements of this section.
new text end

new text begin (d) "Free" means no fee is deducted from the employee's
payroll card account or charged to the employee by the
employee's payroll card issuer or issuers.
new text end

new text begin (e) "Fee" means any and all fees, charges, surcharges, or
costs deducted from an employee's payroll card account or
charged to an employee by the employee's payroll card issuer or
issuers.
new text end

new text begin Subd. 2. new text end

new text begin Free withdrawal. new text end

new text begin A payroll card issuer must
allow an employee who chooses to receive wages through a payroll
card account to make a free withdrawal from the employee's
payroll account of an amount up to and including the employee's
entire net pay as stated on the employee's earnings statement.
This free transaction provided by the payroll card issuer must
be available on or after the employee's regular payday.
new text end

new text begin Subd. 3. new text end

new text begin Fee disclosure. new text end

new text begin When offering an employee the
option of receiving payment of wages through a payroll card
account, an employer must provide to the employee a written
disclosure of all the employee's wage payment options. The
disclosure shall state the terms and conditions of the payroll
card account option, including a complete itemized list of, and
dollar amounts for, all fees that may be deducted from the
employee's payroll card account or may be charged to the
employee by the employee's payroll card issuer or issuers,
including, but not limited to, automated teller machine fees,
card issuance fees, card activation fees, card replacement fees,
fees to close the payroll card account or withdraw remaining
funds, monthly fees, balance inquiry fees, fees per transaction,
fees for excess transactions, point of sale fees, loading fees,
fees for statements and transaction histories, and fees related
to the provision of customer service. The disclosure must also
state that third parties may assess transaction fees in addition
to the fees assessed by the employee's payroll card issuer or
issuers. A copy of the written disclosure must be provided to
the employee.
new text end

new text begin Subd. 4. new text end

new text begin Employee consent to electronic payment. new text end

new text begin The
employer may initiate payment by electronic fund transfer to a
payroll card account only after the employee has voluntarily
consented in writing to that method of payment. Consent to
payment by electronic fund transfer to a payroll card account
shall not be a condition of hire or of employment. On the
consent form, the employee must also acknowledge receiving the
payroll card issuer's written disclosure of the payroll card
account terms and conditions under subdivision 3. A copy of the
signed written consent must be provided to the employee.
new text end

new text begin Subd. 5. new text end

new text begin Monthly transaction statement. new text end

new text begin The payroll card
issuer shall provide an option for the employee to receive at
least one free transaction history each month that includes all
deposits, withdrawals, deductions, or charges by an entity from
or to the employee's payroll card account. Any fee assessed by
the employee's payroll card issuer that was not disclosed to the
employee may not be deducted from the employee's payroll card
account or charged to the employee.
new text end

new text begin Subd. 6. new text end

new text begin Tying arrangements prohibited. new text end

new text begin A payroll card
issuer shall not link the payroll card or payroll card account
to any form of credit, including, but not limited to, a loan
against future pay or a cash advance on future pay.
new text end

new text begin Subd. 7. new text end

new text begin Employer access to account information. new text end

new text begin An
employer is not entitled to any information generated by the
employee's possession or use of a payroll card or payroll card
account except to process transactions and administer the
payroll card and payroll card account.
new text end

new text begin Subd. 8. new text end

new text begin Foreign language disclosures. new text end

new text begin Any employer who
offers a payroll card to an employee using written materials in
a language other than English shall ensure that the payroll card
account disclosures under subdivision 3 and all payroll card
account agreements are provided in that same language.
new text end

new text begin Subd. 9. new text end

new text begin Termination of electronic payment. new text end

new text begin If an
employee who is being paid wages by electronic fund transfer to
a payroll card account requests in writing to be paid wages by
legal tender, check, or direct deposit, the employer shall,
within 14 days of the employee's request, begin payment by the
requested method.
new text end

new text begin Subd. 10. new text end

new text begin Prohibited fees. new text end

new text begin A payroll card issuer may not
charge an inactivity or a dormancy fee on a payroll card account.
new text end

new text begin Subd. 11. new text end

new text begin Penalties. new text end

new text begin Violation of this section is
considered a violation of section 181.79 and subject to the same
penalties.
new text end