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Committee hears bill to allow payroll cards as a wage-payment option; ADP urges electronic pay to replace paper checks
Summary
Senate Bill 79 would permit employers to pay wages to payroll-card accounts when employees authorize it or have not provided bank-account deposit details; the committee heard proponent testimony from ADP and set the bill aside for later consideration.
Senator Greg Bjorkman, chair of the Senate Labor and Commerce Committee, opened discussion on Senate Bill 79 on Feb. 7 in Juneau. SB 79 would add a statutory option allowing employers to pay wages to a payroll card account when an employee voluntarily authorizes the account or has not specified a deposit account.
Sevea Bieber, staff to Senator Bjorkman, summarized the bill and identified the statutory sections the bill would add and amend (adding AS 23.10.044 and updating AS 23.10.040). Bieber said the bill is intended to provide employers an electronic-pay option that can reduce the costs and logistical difficulties of issuing paper paychecks, and to give unbanked employees a way to receive wages without check-cashing fees.
Amy Mil…
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