The bill amends existing wage payment laws in Alaska to include provisions for employers to credit employee wages to a payroll card account, provided that the employee has voluntarily authorized this method of payment or has not opted for direct deposit. It introduces a new section, AS 23.10.044, which outlines the requirements for payroll card accounts, including the necessity for employers to inform employees about their wage payment options, the terms and conditions of the payroll card, and any associated fees. Additionally, the bill mandates that payroll card accounts must offer at least one cost-free withdrawal per week or pay period and provide unlimited cost-free access to account balance information.

Furthermore, the bill prohibits employers from charging fees for various aspects of the payroll card account, such as application, issuance of initial and replacement cards, and transfers of wages. It also requires that employee wages credited to the payroll card account be insured by recognized federal entities. The bill maintains the right of employees to negotiate collectively for payment mechanisms that exceed the minimum requirements set forth in this section. Overall, the legislation aims to modernize wage payment methods while ensuring employee protections and transparency regarding payroll card accounts.

Statutes affected:
SB0079A, AM SB 79, introduced 01/31/2025: 23.10.040, 23.10.044, 37.25.050