SALT LAKE CITY, June 17, 2010 - The Utah Labor Commission instituted a new rule effective March 24, 2010, that allows private sector employers to pay employees’ wages through the use of pay cards.
The employee uses the pay card at an ATM-type machine to withdraw wages, and may do so one time without incurring a fee. For Utah private sector employers, this is one more method to pay wages that reflects a growing trend among employers throughout the country to move to a “paperless” payroll process. For those employees who cannot cash paychecks because they do not have bank accounts, the pay card provides effective access to wages.
All other requirements of the Utah Payment of Wages Act (§34-28-1 et seq.) remain in full force and effect. These require that the employer pay the employee’s wages in full on the paydays designated by the employer. As with the other wage payment methods – direct deposit, checks, drafts – employees paid wages via pay cards must be provided a written statement of deductions from their wages on each payday.
Additionally, employers can provide this statement electronically as long as the employees are given clear instructions beforehand on how to access the statement and the access can occur easily and conveniently on payday, at no cost to the employee. If, for any reason, the electronic access cannot occur on payday, the employer must provide the employee a hard copy of the written statement of deductions.
Questions regarding the new pay card rule, or the payment of wages in general, should be directed to the Utah Labor Commission, Wage Claim Unit, (801) 530-6800.