From Iowa Senate Democrats:
Imagine it’s payday, and you get your pay for the week. It’s on a payroll card (similar to a debit card) instead of a check or direct deposit. You didn’t have a choice in receiving your pay this way. You try to retrieve your money from the payroll card, and you discover you’re being charged a fee to receive your hard-earned pay.
Legislators recently heard from Iowans who came to the Statehouse to tell their stories. We learned that many Iowans don’t have a choice in how they are paid and may incur high fees when paid by payroll card.
Nobody should have to pay a fee to collect their wages. That’s why legislation aimed at clarifying the law regarding payroll cards is moving forward.
Senate Study Bill 1004 requires an employee to voluntarily agree to payment via a payroll card. The agreement must be in writing, and the employee must have the option to withdraw all the wages due in a pay period without incurring a fee. The bill also requires the employer to keep the records of consent and to provide another payment method if an employee requests it at a later time.
SSB 1004 is a simple, common sense bill that aims to protect employee’s pay and rights.
