Illinois Employment Law Update – August 2014 | IL Benefits Broker

Use of Payroll Debit Cards by Employers

On August 6, 2014, Illinois Governor Pat Quinn signed legislation (H.B. 5622) establishing requirements for the use of payroll cards by employers.

The law:

* Prohibits an employer from making receipt of wages by payroll card a condition of employment.
* Sets forth requirements for initiation of payment of wages by electronic fund transfer.
* Provides that a declined transaction must be allowed a certain number of times without a fee.
* Requires an employer to make certain disclosures to an employee, including disclosures upon termination of the employer-employee relationship.

The law goes into effect on January 1, 2015.

Read 2014 IL H.B. 5622

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