Labor Commission, Antidiscrimination and Labor, Labor

Section R610-3-22

Payment of Wages Via Pay Cards

Change in Proposed Rule

DAR File No.: 33299
Filed: 02/01/2010 02:52:29 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this change is to permit employers to use pay cards to pay employee wages, and to establish requirement for use of such pay cards. When this rule was originally filed, an incorrect version of the proposed text was attached. This change in proposed rule attaches the correct text.

Summary of the rule or change:

The proposed rule authorizes employers to use pay cards to pay wages provided that the pay cards allow withdrawal of the full amount of wages once without cost to the employee. (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed amendment that was published in the February 1, 2010, issue of the Utah State Bulletin, on page 53. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed amendment together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

• Section 34-23-101 et seq.
• Section 34-40-101 et seq.
• Section 34-28-1 et seq.
• Section 63G-4-102 et seq.

Anticipated cost or savings to:

the state budget:

This proposed amendment will not impose any additional implementation or regulation costs on the Labor Commission, which is the state agency charged with enforcing Utah's wage payment laws. Regarding costs to the state in its capacity as an employer, the proposed rule permits, but does not require, use of pay cards. Consequently, the rule does not impose any cost on the state. However, it is possible that use of pay cards could reduce costs associated with already-existing payroll methods, thereby resulting in some degree of savings to that state.

local governments:

The proposed rule permits, but does not require, use of pay cards. Consequently, the rule will not impose any costs on local government. However, it is possible that use of pay cards could reduce costs associated with already-existing payroll methods, thereby resulting in some degree of savings to local governments.

small businesses:

The proposed rule permits, but does not require, use of pay cards. Consequently, the rule will not impose any costs on small businesses. However, it is possible that use of pay cards could reduce costs associated with already-existing payroll methods, thereby resulting in some degree of savings to small businesses.

persons other than small businesses, businesses, or local governmental entities:

The proposed rule permits, but does not require, use of pay cards. Consequently, the rule will not impose any costs on persons other than small businesses, businesses, or local government entities. However, it is possible that use of pay cards could reduce costs associated with already-existing payroll methods, thereby resulting in some degree of savings.

Compliance costs for affected persons:

The proposed rule does not require any employer to use pay cards, but merely permits pay cards as an alternative to existing methods of paying wages, such as payroll checks and electronic transfers. Consequently, an employer will only incur compliance costs as a result of this rule if the employer voluntarily chooses to pay wages with pay cards. Also, because the proposed rule does not permit any costs associated with use of a pay card system to be assessed to employees, there will be no compliance costs for employees.

Comments by the department head on the fiscal impact the rule may have on businesses:

The Commission is promulgating this rule amendment at the request of employers who desire to use pay cards to pay wages. The proposal has been discussed and endorsed by the Antidiscrimination Advisory Council. Because the rule establishes an alternative method of paying wages but does not mandate use of that method, each business can evaluate its particular circumstances and determine whether use of a pay card system is advantageous, financially or otherwise, for that business.

Sherrie Hayashi, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Labor Commission
Antidiscrimination and Labor, Labor
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Brent Asay at the above address, by phone at 801-530-6802, by FAX at 801-530-7601, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/17/2010

This rule may become effective on:

03/24/2010

Authorized by:

Sherrie Hayashi, Commissioner

R610. Labor Commission, Antidiscrimination and Labor, Labor.

R610-3. Filing, Investigation, and Resolution of Wage Claims.

R610-3-22. Payment of Wages Via Pay Cards.

[A. An employer may pay wages by providing the employee a pay card subject to the following conditions:

1. The employee must be able to use the pay card for full payment of wages on the designated pay day.

2. The employee must be able to use the pay card twice in a pay period to withdraw funds without incurring a fee or charge.

] A pay card is a stored value card that can be used at an ATM-type machine to access wages that are credited to the card. An employer may use a pay card to pay an employee's wages if the following conditions are met:

A. With one use, the employee shall be able to withdraw the full amount of earned wages without incurring a fee. "One use" means a single transaction.

B. The full amount of wages for a pay period shall be available for the employee via the pay card on the applicable payday.

C. On each payday, the employer shall provide the employee a statement of deductions from the employee's gross wages for the subject pay period. This statement shall be provided:

1. in writing, or

2. electronically, provided that the employee must be able to easily and immediately access the information and print a paper copy of the same, without cost.

 

KEY: wages, minors, labor, time

Date of Enactment or Last Substantive Amendment: 2010

Notice of Continuation: November 30, 2006

Authorizing, and Implemented or Interpreted Law: 34-23-101 et seq.; 34-28-1 et seq.; 34-40-101 et seq.; 63G-4-102 et seq.