Connecticut Law Allows Employers to Pay Wages Using Payroll Cards

Law Effective October 1, 2016

A new law in Connecticut, effective October 1, 2016, allows employers to pay wages using payroll cards, if certain conditions are met. Highlights of the law include the following:

  • An employer may offer the use of payroll cards to deliver wages, salary, or other compensation (“wages”) to employees, provided:
    • Each employee has the option of receiving wages by direct deposit and by negotiable check; and
    • The employee voluntarily and expressly authorizes—in writing or electronically—the payment of wages by means of a payroll card account without any intimidation, coercion, or fear of discharge or reprisal. An employer may not make the payment of wages by means of a payroll card account a condition of employment or a condition for the receipt of any benefit or other form of remuneration.
  • Prior to an employee electing to receive wages by means of a payroll card account, each employer using payroll card accounts must provide such employee with clear and conspicuous notice, in writing, and in the language the employer normally uses to communicate employment-related policies to its employees, of certain information (§ 1(c)).
  • Each pay period (but not more frequently than each week) an employee with a payroll card must be allowed to make at least 3 withdrawals from the payroll card account at no cost to the employee—one of which permits withdrawal of the full amount of his or her net wages (for the pay period) at a depository financial institution or other convenient location.
  • None of the employer’s costs associated with paying wages using a payroll card or establishing the payroll card account may be deducted from or charged against the employee’s wages.
  • Each employer must provide the employee a means of checking his or her payroll card account balance through an automated telephone system, automated teller machine, or electronicallywithout cost to the employee 24 hours per day and 7 days per week.

Note: Employers utilizing payroll cards are subject to additional requirements under state law, and must also comply with certain federal laws and regulations, including guidance from the federal Consumer Financial Protection Bureau.


Connecticut: New Laws Address Wage Payment Timing and Electronic Pay Notices

Wage Changes Affect Many Employers

New laws in Connecticut make certain changes regarding wage payment timing and electronic pay notices. Key provisions and effective dates of these laws are presented below.

Wage Payment Timing
Employers in Connecticut are generally required to pay wages weekly—or, under a new law effective as of June 6, 2016, once every two weeks—on a regular pay day which is designated in advance by the employer and not more than 8 days after the end of the pay period.

Note: The labor commissioner may, upon application, waive this requirement with respect to any particular week or weeks, and may also, upon application, permit an employer to establish regular pay periods less frequently than once every two weeks, provided each affected employee is paid in full at least once in each calendar month on a regularly established schedule.

Electronic Wage Statements

Existing law provides that with each wage payment, employers must furnish to each employee a written record of hours worked, the gross earnings showing straight time and overtime as separate entries,itemized deductions, and net earnings—except that the furnishing of arecord of hours worked and the separation of straight time and overtime do not apply in the case of any employee with respect to whom the employer is specifically exempt from the keeping of time records and the payment of overtime under state or federal law.

Under a new law effective October 1, 2016, such records may be furnished electronically—with the employee’s explicit consent. If the record of hours is furnished electronically, the employer must provide a means for each employee to securely, privately, and conveniently access and print such record. The employer must also incorporate reasonable safeguards regarding any information contained in the record furnished electronically to protect the confidentiality of an employee’s personal information.

Click here to read the text of the new law (§ 3).


Connecticut Enacts ‘Ban the Box’ Law

Originally Published by HR360

Law Effective January 1, 2017

Under a new law in Connecticut, employers are prohibited from inquiring about a prospective employee’s prior arrests, criminal charges, orconvictions on an initial employment application, unless:

  • The employer is required to do so by an applicable state or federal law; or
  • A security or fidelity bond or an equivalent bond is required for the position for which the prospective employee is seeking employment.

An employee or prospective employee may file a complaint with the state Labor Commissioner alleging an employer’s violation of the “Ban the Box” law.

The law is effective January 1, 2017. Click here to read the text of the law.