In addition to any other requirements under this act, all of the following provisions apply when payment of wages, salaries, commissions or other compensation is made through transfers to a payroll card account:
(1) The employee shall be issued a payroll card in accordance with 12 CFR Part 1005 (relating to electronic fund transfers (Regulation E)).
(2) The payroll card account shall be established at a financial institution whose funds are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
(3) No employer may make the payment of wages, salary, commissions or other compensation by means of a payroll card account a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee.
(4) Prior to obtaining an employee's authorization, the employer shall provide the employee with clear and conspicuous notice, in writing or electronically, of all of the following:
(i) All of the employee's wage payment options.
(ii) The terms and conditions of the payroll card account option, including the fees that may be deducted from the employee's payroll card account by the card issuer.
(iii) A notice that third parties may assess fees in addition to the fees assessed by the card issuer.
(iv) The methods available to the employee for accessing wages without fees.
(5) The payroll card account shall provide the employee with the ability without charge to make:
(i) At least one withdrawal each pay period for any amount up to and including the full amount of the employee's net wages for that period or one such withdrawal weekly if the employee is paid more frequently than weekly.
(ii) One in-network ATM withdrawal each pay period or one such withdrawal weekly if the employee is paid more frequently than weekly.
(6) The payroll card account shall provide the employee with a means of ascertaining the balance in the employee's payroll card account through an automated telephone system or other electronic means without cost to the employee.
(7) In addition to the fees prohibited under paragraphs (5) and (6), an employer may not use a payroll card account that charges fees to the employee for any of the following:
(i) The application, initiation or privilege of participating in the payroll card program.
(ii) The issuance of the initial payroll card.
(iii) The issuance of one replacement card per calendar year upon request of the employee.
(iv) The transfer of wages, salary, commissions or other compensation from the employer to the payroll card account.
(v) Purchase transactions at the point of sale.
(vi) Nonuse or inactivity in a payroll card account consisting of the failure to withdraw funds from an account, deposit funds into an account, transfer funds to another person or use an account for purchase transactions, if the nonuse or inactivity is less than 12 months in duration.
(8) The funds in a payroll card account shall not expire. If a payroll card has an expiration date during the period when wages, salary or other compensation are applied to the payroll card account by the employer and for 60 days after the last transfer of wages, salary, commissions or other compensation to the account, the employee shall be provided a replacement card without cost prior to the expiration date, unless prior to that date the account becomes subject to the custody and control of the Commonwealth under Article XIII.1 of the act of April 9, 1929 (P.L. 343, No. 176), 1 known as The Fiscal Code, or pursuant to the unclaimed property or escheat law of another state, the District of Columbia or a territory of the United States.
(9) The employer shall honor an employee's written or electronic request to change the employee's method of receiving wages from a payroll card account to direct deposit or negotiable check. The change shall take effect as soon as practicable, but no later than the first payday after 14 days from receipt by the employer of the employee's request and any information necessary to implement the change.
(10) Nothing in this section may be construed to preempt or override the terms of any collective bargaining agreement with respect to the methods by which an employer provides payment of wages, salary, commissions or other compensation to employees.
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