Ogletree Deakins: Illinois Permits Use of Payroll Cards | Practical Law

Ogletree Deakins: Illinois Permits Use of Payroll Cards | Practical Law

This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses a new amendment to the Illinois Wage Payment and Collection Act (IWPCA). The amendment, which was signed by Illinois governor Pat Quinn on August 6, 2014, adds payroll cards as a new method for employees to be paid. Under the amendment, employers are prohibited from requiring receipt of wages by payroll card to be a condition for employment, wage payment or benefits. Before paying an employee by payroll card, an employer must receive written or electronic consent and must provide a written list of fees that it can deduct from an employee's account. Fees that employers can impose on employees for account withdrawals and declined transactions are limited and employers may not create programs that charge fees for point of sale transactions or for participation in the payroll card program. The amendment takes effect on January 1, 2015.

Ogletree Deakins: Illinois Permits Use of Payroll Cards

Practical Law Legal Update 4-577-9945 (Approx. 3 pages)

Ogletree Deakins: Illinois Permits Use of Payroll Cards

by Ogletree, Deakins, Nash, Smoak & Stewart, P.C.
Published on 08 Aug 2014Illinois, United States
This Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses a new amendment to the Illinois Wage Payment and Collection Act (IWPCA). The amendment, which was signed by Illinois governor Pat Quinn on August 6, 2014, adds payroll cards as a new method for employees to be paid. Under the amendment, employers are prohibited from requiring receipt of wages by payroll card to be a condition for employment, wage payment or benefits. Before paying an employee by payroll card, an employer must receive written or electronic consent and must provide a written list of fees that it can deduct from an employee's account. Fees that employers can impose on employees for account withdrawals and declined transactions are limited and employers may not create programs that charge fees for point of sale transactions or for participation in the payroll card program. The amendment takes effect on January 1, 2015.