DAR File No. 32601

Labor Commission, Antidiscrimination and Labor, Labor

R610-3-22

Payment of Wages Via Pay Cards

NOTICE OF PROPOSED RULE

DAR File No.: 32601
Filed: 04/30/2009, 02:34
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to permit employers to use pay cards to pay employee wages, and to establish requirements for use of such pay cards.

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 for at least six months after the wages are due at no cost to the employee.

State statutory or constitutional authorization for this rule:

Sections 34-23-101 et seq., 34-28-1 et seq., 34-40-101 et seq., and 63G-4-102 et seq.

Anticipated cost or savings to:

the state budget:

This proposed amendment will not impose any additional implementation or regulatory 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 to 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 the 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 and persons other than 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.

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
HEBER M WELLS BLDG
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 basay@utah.gov

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:

06/15/2009

This rule may become effective on:

06/22/2009

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 or within 6 months thereafter.

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.

 

KEY: wages, minors, labor, time

Date of Enactment or Last Substantive Amendment: [June 13, 2008]2009

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.