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New Hawaii Law Allows Employers to Continue Using Payroll Cards for Wage Payments

Hawaii post

Hawaii recently passed a law allowing employers to continue to offer payroll cards as a form of wage payment to their employees. The bill was signed by Governor Neil Abercrombie and is scheduled to go into effect Sept. 1, 2014.

In April 2014, the State of Hawaii Department of Labor and Industrial Relations issued an amended notice suspending the use of payroll, pay or debit cards to distribute employee wages as of Sept. 1, 2014. With the passage of the new legislation, employers located in Hawaii now can continue to offer payroll cards to their employees, provided that they follow all of the requirements outlined in the legislation. These requirements include:

  • The employee is given the option of being paid by check, direct deposit to an account selected by the employee or a payroll card.
  • The employer does not require the use of a payroll card.
  • Participation in the payroll card program is not made a condition of hire or continued employment.
  • The employer provides the employee with a description of all of the employee’s wage payment options before the employee makes a selection.
  • The employee voluntarily consents in writing or electronically to the payroll card after receiving the information about all of his or her payment options.
  • The employer honors a written request by the employee to change payment method within two pay periods of the request.



Payroll cards have become an increasingly popular option among employers across the United States. Alongside direct deposit, this option gives employees another quick, paperless option, as well as the ability to help monitor their budget without worrying about overdrafts or tacking on debt like many consumers do with credit cards. On top of the convenience this option provides employees, it also benefits the employer by helping to increase efficiencies, control costs and reduce the risk that often comes from lost checks or fraud.

The shift to prepaid and payroll cards is a trend that can be seen throughout the country. In fact, Americans loaded $65 billion to prepaid cards back in 2012, according to a study conducted by the Pew Charitable Trusts.

Learn more about electronic payment solutions that can help both your business and your employees reap the benefits of paycards.



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