Massachusetts S 2447: An Act protecting employees who receive wages by payroll debit cards

Bill Text

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2447 
 
The Commonwealth of Massachusetts 
 
_______________
 
In the One Hundred and Ninetieth General Court 
(2017-2018) 
_______________ 
 
 
SENATE, Thursday, April 19, 2018 
 The committee on Labor and Workforce Development, to whom was referred the petition 
(accompanied by bill, Senate, No. 1008) of Eileen M. Donoghue for legislation to protect 
employees who receive wages by payroll debit cards,- reports the accompanying bill (Senate, 
No. 2447). 
 
For the committee, 
 Jason M. Lewis 
  

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2447 
 
 
The Commonwealth of Massachusetts 
 
_______________
 
In the One Hundred and Ninetieth General Court 
(2017-2018) 
_______________
 
 
An Act protecting employees who receive wages by payroll debit cards. 
 
 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority 
of the same, as follows: 
 
1 SECTION 1. Chapter 149 of the General Laws is hereby amended by inserting after 
2section 148D the following new section:- 
3 Section 148E. (a) As used in this section, the following words shall, unless the context 
4clearly requires otherwise, have the following meanings: 
5 “Automated Teller Machine”, also called ATM, is a computerized electronic machine 
6that dispenses cash or performs other basic banking functions. 
7 “Consent”, an express, advance, written or electronic authorization given voluntarily by 
8the employee and only given following receipt by the employee of written notice of all terms and 
9conditions of the method of payment. Consent may be withdrawn at any time, provided however, 
10that the employer shall be given a reasonable period of time, but no longer than two full pay 
11periods, to finalize such change. 
12 “Electronic fund transfer”, any transfer of funds that is initiated through an electronic 
13terminal, telephone, computer or magnetic tape for the purpose of ordering, instructing or 

14authorizing a financial institution to debit or credit a consumer’s account. The term includes but 
15is not limited to: (i) point of sale transfers; (ii) automated teller machine transfers; (iii) direct 
16deposits or withdrawals of funds; (iv) transfers initiated by telephone; and (v) transfers resulting 
17from debit card transactions, whether or not initiated through an electronic terminal.  
18 “Employee”, as provided in subsection (h) section 1 of chapter 151A. “Local access”, the 
19employee is provided with access to his or her wages, at a financial institution, facility or 
20machine without charge by deduction from the face amount, as shall be deemed by the attorney 
21general to be reasonable, , and without unreasonable restraint by the employer or its agent.“No 
22cost”, an employee can access his or her wages, in full, without encumbrances, costs, charges, or 
23fees. 
24 “Payroll debit card”, a card that provides access to an account with a financial institution 
25established directly or indirectly by the employer, and to which transfers of the employee’s 
26wages, salary or other compensation are made on an isolated or recurring basis. 
27 “Reasonable interval”, not less frequently than annually. 
28 (b) An employer who offers methods of payment by payroll debit cardshall provide 
29employees with a written notice that includes: 
30 (1) a plain language description of all of the employee’s options for receiving wages; 
31 (2) a statement that the employer may not require the employee to accept wages by 
32payroll debit card; 
33 (3) a statement that an employee must be able to access his or her net wages in full at 
34least once each pay period without any fees; and 

35 (4) access to a written or electronic list of locations, facilities or financial institutions 
36where employees can gain local access to funds and withdraw wages at no charge to the 
37employees. 
38 (c) An employer shall obtain consent from an employee in writing before paying the 
39employee’s wages by payroll debit card and shall ensure that: 
40 (1) It obtains the employee’s informed consent without intimidation, coercion or fear of 
41adverse action by the employer for refusal to accept payment of wage by payroll debit card; and 
42 (2) does not make payment of wage by payroll debit card a condition of hire or of 
43continued employment. 
44 (d) The written notice and written consent may be provided and obtained electronically 
45so long as an employee is provided with the ability to view and print both the notice and the 
46consent while the employee is at work and without cost to the employee, and the employee is 
47notified of his or her right to print such materials by the employer through such electronic 
48process. 
49 (e) The written notice and written consent shall be provided in English and in any other 
50language that is spoken by 5% or more of the employer’s workforce and for which a translated 
51notice and consent in that language is availa