Senate Bill 88 creates a new option for employers who wish to use alternative and more convenient forms of payment to their employees. Employers will now be authorized to use a prepaid payroll debit card account as a legal method of payment of wages to employees. Georgia law previously allowed for checks, cash, and direct deposit, but was silent on using prepaid debit cards as an authorized method. This method of payment is already common in other states, but some employers were reluctant to use this method until the state law was amended and clarified.
The law requires any employer electing to participate in the method to deliver a written description of any bank fees associated with the program, and allows 30 days for an employee to request a physical check in lieu of the debit card. It also allows employees to transfer to direct deposit at any time.
This bill was signed into law by Governor Deal on May 6th and is now in effect.