Illinois Enacts New Payroll Debit Card Law: Employment Law Manual Updated

Author: Rena Pirsos, XpertHR Legal Editor

The Illinois wage payment law now includes a new section authorizing employers to pay employees' wages via payroll debit cards, effective January 1, 2015. In addition to the requirement that employees must voluntarily agree to be paid by this method, the new law includes several restrictions with which an employer must comply before it can offer a payroll debit card program to employees.

Although paycards are already permitted by an employer advisory issued by the Illinois Department of Labor, the law had been silent on the issue until now.

The Payment of Wages: Illinois section of the Employment Law Manual has been updated to include all the new requirements. In addition, a new entry has been added to the Legal Timetable.