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Texas bill to allow payment of wages by payroll card accounts
Monday, April 15, 2019 7:00 AM

HB 2240 by Rep. Jim Murphy (R-Houston) will allow private sector employers to pay wages through a payroll card account. Current Texas law requires employees to be paid in check or cash. Employees would not be required to accept a payroll card. They could opt out and receive an alternative form of payment.

The bill, as filed, stated that the electronic transfer of funds would go to a bank account designated by the employee. The Texas Credit Union Association worked with the bill’s author to change the language so the choice was not limited to banks. The result is a committee substitute to the bill that allows the funds to go to a financial institution of the employee’s choice. The bill also requires that the payroll cards be issued by a federally insured financial institution.

The Senate has a companion bill, SB 1485, by Sen. Chuy Hinojosa (D-McAllen).

Contact Jeff Huffman at 469-385-6488 or jhuffman@txcua.coop for more information.