May 10, 2024 – The state Senate Labor and Industry Committee unanimously voted to support Sen. Nick Miller’s (D-Lehigh-Northampton) payroll modernization legislation, Senate Bill 1026, co-introduced by Sen. Lisa Baker (R-Luzerne-Pike-Susquehanna-Wayne-Wyoming).
SB 1026 allows an employer to elect to use a no-fee payroll debit card as a paycheck for employees.
“It’s time to update our payroll systems across the commonwealth,” said Miller. “We saw firsthand during the pandemic how difficult it was for some employees to physically cash their checks. Additionally, bank holidays, weather emergencies and mail delays can prevent people from accessing their hard-earned money in a timely fashion. Providing a debit card gives them instant access to their funds.”
Employers would not be required to pay their employees electronically, but the proposal sets a framework for employers to pay electronically if they choose. Payroll cards cannot be over-drafted, do not expire and provide fraud protection, along with dispute resolution options.
“Senate Bill 1026 represents an example of shared interests coming together for a practical solution. Employers can operate more efficiently, and employees are guaranteed consumer protections and, in some cases, further protection of their wage payment. I look forward to working with Sen. Miller and our Senate colleagues to advance this issue,” said Baker.
“Payroll cards are accessible, sturdy, modern and offer strong consumer protections. These products give employees options to access their money, such as from banks, ATMs, cashback at a point of sale, online bill pay or online purchases,” added Miller.
“Our stakeholders in the labor industry, as well as in the business industry, support our efforts to modernize,” added Miller.
The American Payroll Association has also voiced they are in favor of these modernization efforts in Pennsylvania.
“I anticipate the Senate to continue moving the bill along in the process this session with bipartisan support,” said Miller.