Nebraska Enacts New Pay Statement Requirements, Payroll Debit Card Law

Author: Rena Pirsos, XpertHR Legal Editor

June 6, 2014

Two significant changes to the Nebraska wage payment law will take effect soon. Effective July 18, 2014, an amended provision will require employers to provide a pay statement to all employees on payday. Starting in 2015, a new provision will permit employers to pay wages using payroll debit cards.

Pay Statements

By requiring pay statements for all employees as of July 18, 2014, the amended provision goes much farther than current law, which only requires an employer to provide a pay statement if an employee requests it in writing, within 10 days of the request.

The new provision permits employers to deliver the pay statements to employees via three different methods:

  • Mail;
  • Electronically; or
  • By making pay statements available to employees at their regular place of work during work hours for all shifts.

The pay statements must include the following information:

  • Employer's identity;
  • Hours for which the employee is being paid;
  • Amount of wages earned by the employee for the pay period; and
  • Deductions taken from the employee's pay.

The amended law also provides that an employer does not have to provide information on hours worked to employees who are exempt from overtime under the Fair Labor Standards Act, unless the employer has a policy or practice of paying employees overtime wages, a bonus or other payment based on hours worked. If there is a policy or practice in place, the employer must provide a statement to the exempt employee showing the hours worked, or the payments the employer made to the employee.

Noncompliant employers will be subject to fines ranging from $100 to $500.

Payroll Debit Cards

Effective January 1, 2015, employers that meet the following conditions will be permitted to pay employees via payroll debit cards:

  • Comply with federal law regarding compulsory use of electronic fund transfers (15 USC § 1693k);
  • Allow employees one free withdrawal per pay period (but not more than once per week) in an amount up to and including the total amount of an employee's net wages, as stated on the employee's pay statement; and
  • Not pass any fees or costs incurred in paying wages via payroll debit card on to employees.

The new provision defines payroll debit card (including the terms payroll card and paycard) as a stored-value card issued by or on behalf of a federally insured financial institution that provides an employee with immediate access for withdrawal or transfer of his or her wages through a network of automated teller machines.