Bill authorizing payroll cards goes to Texas governor

HB 2240 by Rep. Jim Murphy (R-Houston) and Sen. Chuy Hinojosa (D-McAllen) will allow employers to pay wages through a payroll card account. Current Texas law requires employees to be paid in check or cash. The bill was passed by the House on May 3 and passed by the Senate on May 15.

As chair of the House Committee on Pensions, Investments, and Financial Services, Murphy said the payroll card option is particularly useful in times of natural disasters, such as Hurricane Harvey, when businesses may be closed and unable to issue checks to employees or when travel to obtain checks is not possible. Employees would not be required to accept a payroll card. They could opt out and receive an alternative form of payment.

The bill originally stated that the electronic transfer of funds would go to a bank account. The Texas Credit Union Association worked with the bill’s author to amend the bill making clear the funds can go to the financial institution of the employee’s choice.

Contact Jeff Huffman, Texas Credit Union Association, at 469-385-6488 or jhuffman@txcua.coop for more information.