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Payment Of Wages By Debit Card

Published by on November 5, 2009

Workplace Prof Blog has a post here about Wal-Mart moving to the use of prepaid debit cards instead of paper paychecks.  They inquire whether the elimination of paper checks complies with state law in the various jurisdictions where Wal-Mart is located.  More after the break. The question of whether Wal-Mart can move to a “paperless […]

Workplace Prof Blog has a post here about Wal-Mart moving to the use of prepaid debit cards instead of paper paychecks.  They inquire whether the elimination of paper checks complies with state law in the various jurisdictions where Wal-Mart is located.  More after the break.

The question of whether Wal-Mart can move to a “paperless payroll” will depend on each state’s pay law.  A helpful commentator posted a reply on Workplace Prof Blog about Virginia law on this issue:  “In Virginia, employers will be authorized to pay wages and salaries to employees hired after January 1, 2010, via credit card to a prepaid debit card or card account, without affirmative employee consent, if an employee fails to designate a financial institution to which payment could be made by electronic automated fund transfer and the employer arranges for an employee to have the ability to make at least one free withdrawal or transfer per pay period using the card at participating financial institutions (Ch. 728 (S. 1264), L. 2008, enacted March 30, 2009).” 

For those interested in the specific details of this law, the text of the Virginia statute regarding the payment of wages — Va. Code section 40.1-29 — can be found here.

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