Bill > SB581

This bill amends existing Pennsylvania law regarding electronic funds transfers and payroll card accounts to enhance employee protections and clarify employer obligations. The bill requires employers to provide clear, advance notice (at least 45 days) to employees before transitioning to electronic payment methods, ensuring workers understand their rights and payment options. Employers must explicitly inform employees that they can choose their financial institution for receiving wages and provide details about direct deposit and payroll card accounts. If an employee does not designate a financial institution at least seven days before the specified payday, the employer may enroll them in a payroll card account. The bill also mandates consumer protections for electronic fund transfers, requiring financial institutions to provide disclosures and account information in accordance with federal regulations. Additionally, the bill introduces new restrictions on payroll card accounts, such as limiting overdraft fees and providing free ATM withdrawals, and requires employers to honor employee requests to change payment methods. The new provisions will not apply to existing payroll card accounts, and the bill will not modify current collective bargaining agreements. The bill will take effect 60 days after its passage.

Budget and Finance, Labor and Employment

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=581