On May 5, 2015, Georgia Governor Nathan Deal signed a new law that now expressly permits Georgia employers to pay employees through the use of payroll card accounts. The new law – which is effective immediately – amended O.C.G.A. § 34-7-2. The previous version of that statute only referenced cash, check, and (with the consent of the employee) direct deposit as the permissible methods of payment. The new version of the statute now expressly permits employers to pay employees “by credit to a payroll card account.”
In order to use payroll cards under the new law, an employer must provide employees with the following:
- A written explanation of any fees associated with the payroll card account. For current employees, this notice must be provided at least 30 days prior to the date the payroll card account is going to become available. For new employees, the notice must be provided at the time of hiring.
- At the same time the above notice is provided, the employer must also provide a form allowing employees to opt out of receiving payments via payroll card account. This form must also be made generally available to employees at all times.
- Employees must also be given the ability to later opt out of using the payroll card account by submitting a written request for a check or by providing the proper authorization for direct deposit.