Bill > SB79

This bill amends Alaska law to allow employers to pay wages to employees using payroll card accounts, which are accounts established by an employer for an employee to receive wages, accessed by a payroll card. Employers can use these payroll card accounts if the employee voluntarily authorizes it or if the employee hasn't authorized direct deposit. Before using a payroll card account, employers must inform employees about their payment options, the payroll card's terms and conditions including any fees, and provide cost-free ways to access wages and check account balances. The payroll card account itself must offer at least one free withdrawal per pay period up to the net wage amount and unlimited free methods to check the balance via phone or electronically. The bill prohibits certain fees for payroll card accounts, such as application, initiation, participation, initial card issuance, and point-of-sale transactions, and requires that funds in these accounts be insured by entities like the Federal Deposit Insurance Corporation (FDIC). This new provision, AS 23.10.044, is added to existing wage payment laws, and the bill also makes a minor change to the existing law regarding how wages can be paid. The bill is set to take effect on July 1, 2026.