Jul 11, 2016 1:27:38 PM
By Coastal Payroll
In June, Connecticut Governor Dan Malloy signed Senate Bill 211 into law. This law allows employers to use paycards to pay wages to Connecticut employees as long as certain conditions are met. Previously, the Connecticut Department of Labor's position was such cards were not authorized under state law and could not be used. The effective date of the new law is October 1, 2016.
Employees must have the option to receive wages by direct deposit and paper check. Connecticut employees must voluntarily authorize use of the payroll card in writing or electronically must be made without intimidation or coercion by the employer and without fear of reprisal. The Act also prohibits an employer from requiring employees to accept wage payments through payroll cards and requires employers to pay wages by check or through direct deposit in lieu of payroll cards for employees who do not agree to payment via payroll cards. It also cannot be a condition of employment.
The required notice must include the following information:
If you have any questions regarding the new Connecticut Paycard Law or providing a paycard solution for your employees, contact Coastal Payroll today at email@example.com