2015 -- S 0351

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LC001510

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

     Introduced By: Senator Michael J. McCaffrey

     Date Introduced: February 12, 2015

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 28-14-10.1 of the General Laws in Chapter 28-14 entitled "Payment

of Wages" is hereby amended to read as follows:

     28-14-10.1. Payment of wages directly to employee's account in financial institution.

-- (a) Notwithstanding any other provision of law, upon written or electronic request an employee

of a state agency or any other employer may authorize a disbursing officer to make payment by

sending to a financial organization designated by the employee a check or credit in the amount of

net pay due to the employee drawn in favor of the organization and for credit to the checking

account of the employee or for deposit in the savings account of the employee or for the purchase

of shares for the employee.

      (b) If more than one employee to whom a payment is to be made designates the same

financial organization, the disbursing officer shall make the payment by sending to the

organization a check or credit that is drawn in favor of the organization for the total amount

designated by those employees and by specifying the amount to be credited to the account of each

of those employees.

      (c) "State agency" means any department, agency, board, office, or commission in state

government.

      (d) "Financial organization" means any bank, savings bank, savings and loan association

or similar institution, or federal or state chartered credit union.

     (e) "Payroll card account" means an account that is directly or indirectly established

through an employer to which transfers of the employee's wages, salary or other compensation

are made, and which carries the consumer protections that apply to payroll card accounts under

the Electronic Fund Transfer Act 15 U.S.C. § 1693 et seq., and Regulation E, 29 C.F.R. Part

1005, as may be amended.

     (f) If an employer pays wages to an employee by credit to a payroll account:

     (1) Exempt as provided in subsection (f)(2) of this section, the employee must be able to

make at least one withdrawal from the payroll card account in each pay period without charge for

any amount up to and including the full amount of the employee's net wages for the pay period.

     (2) If the employee's wages are paid more frequently than weekly, the employee must be

able to make at least one withdrawal from the payroll card account each week without charge for

any amount up to and including the full amount of the employee's net wages for that week.

     (3) Employees who receive wages by credit to a payroll card account must be provided

with a means of checking their payroll card account balances through an automated telephone

system and one additional electronic means, without cost, irrespective of the number of inquiries

made.

      (e)(g) The provisions of this section shall be with the consent of the employer.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

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     This act would allow, subject to an employer's consent, an employee to set up a payroll

card account with his or her financial institution which can accept electronic transfer credit of

wages from the employer.

     This act would take effect upon passage.

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