Can an employer charge any fees to employees who enroll in its paycard program?

Author: Alice Gilman

Fees associated with paycards are severely restricted; all state paycard laws require that employees receive their full pay, less withholding taxes and other voluntary deductions, every payday. The following general rules apply in most states:

  • Fees may not be imposed on employees who initiate the card or for the employer's loading of the card.
  • Fees may not be charged for point-of-sale transactions or for replacement of lost paycards.
  • Fees for inactivity of less than one year are generally prohibited.
  • Employees must be allowed to decline one transaction per month free of charge.