State Sen. Nick Miller (D-Lehigh) announced Friday that his payroll modernization bill had passed unanimously out of the Senate Labor and Industry Committee.
Co-introduced by state Sen. Lisa Baker (R-Susquehanna), SB 1026 allows an employers to use a no-fee payroll debit card as a form of payment instead of a check for its employees.
“It’s time to update our payroll systems across the commonwealth,” Miller said. “We saw firsthand during the pandemic how difficult it was for some employees to physically cash their checks. Additionally, bank holidays, weather emergencies and mail delays can prevent people from accessing their hard-earned money in a timely fashion. Providing a debit card gives them instant access to their funds.”
The bill would not require employers to pay their employees electronically, but instead establishes a framework for employers who chose to do so. Payroll cards cannot be over-drafted, do not expire and provide fraud protection, officials said. Additionally, the cards provide employers and employees with dispute resolution options.
“Senate Bill 1026 represents an example of shared interests coming together for a practical solution. Employers can operate more efficiently, and employees are guaranteed consumer protections and, in some cases, further protection of their wage payment. I look forward to working with Sen. Miller and our Senate colleagues to advance this issue,” Baker said. “Payroll cards are accessible, sturdy, modern and offer strong consumer protections.
The American Payroll Association also supports the modernization efforts.
“I anticipate the Senate to continue moving the bill along in the process this session with bipartisan support,” Miller said.