2015 -- H 5590

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LC001509

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

     

     Introduced By: Representatives Tobon, Melo, Abney, Solomon, and Coughlin

     Date Introduced: February 25, 2015

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 28-14-10.1 of the General Laws in Chapter 28-14 entitled "Payment

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of Wages" is hereby amended to read as follows:

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     28-14-10.1. Payment of wages directly to employee's account in financial institution.

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-- (a) Notwithstanding any other provision of law, upon written or electronic request an employee

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of a state agency or any other employer may authorize a disbursing officer to make payment by

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sending to a financial organization designated by the employee a check or credit in the amount of

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net pay due to the employee drawn in favor of the organization and for credit to the checking

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account of the employee or for deposit in the savings account of the employee or for the purchase

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of shares for the employee.

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      (b) If more than one employee to whom a payment is to be made designates the same

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financial organization, the disbursing officer shall make the payment by sending to the

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organization a check or credit that is drawn in favor of the organization for the total amount

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designated by those employees and by specifying the amount to be credited to the account of each

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of those employees.

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      (c) "State agency" means any department, agency, board, office, or commission in state

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government.

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      (d) "Financial organization" means any bank, savings bank, savings and loan association

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or similar institution, or federal or state chartered credit union.

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     (e) "Payroll card account" means an account that is directly or indirectly established

 

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through an employer to which transfers of the employee's wages, salary or other compensation

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are made, and which carries the consumer protections that apply to payroll card accounts under

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the Electronic Fund Transfer Act 15 U.S.C. ยง 1693 et seq., and Regulation E, 29 C.F.R. Part

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1005, as may be amended.

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     (f) If an employer pays wages to an employee by credit to a payroll account:

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     (1) Exempt as provided in subsection (f)(2) of this section, the employee must be able to

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make at least one withdrawal from the payroll card account in each pay period without charge for

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any amount up to and including the full amount of the employee's net wages for the pay period.

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     (2) If the employee's wages are paid more frequently than weekly, the employee must be

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able to make at least one withdrawal from the payroll card account each week without charge for

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any amount up to and including the full amount of the employee's net wages for that week.

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     (3) Employees who receive wages by credit to a payroll card account must be provided

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with a means of checking their payroll card account balances through an automated telephone

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system and one additional electronic means, without cost, irrespective of the number of inquiries

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made.

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      (e)(g) The provisions of this section shall be with the consent of the employer.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- PAYMENT OF WAGES

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     This act would allow, subject to an employer's consent, an employee to set up a payroll

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card account with his or her financial institution which can accept electronic transfer credit of

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wages from the employer.

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     This act would take effect upon passage.

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