Governor Quinn recently signed into law Public Act 098-0862 concerning payroll cards. The Act, found at 820 ILCS 115/14.5, goes into effect on January 1, 2015. Under the law, employers may not condition employment or employment benefits on an employee's decision to receive wages on a payroll card. Before transferring wages to a payroll card, the employer must notify the employee that payment by payroll card is voluntary. Employers must also provide information about alternative methods of payment, as well as the terms and conditions of the use of a payroll card. The employee must consent, by written or electronic signature, to receipt of wages by payroll card.
With regard to employee access to payroll cards, employers must provide employees with a method of withdrawing wages from the payroll card cost-free and conveniently. Employees are entitled to one transaction history per month. Additionally, employees must be able to receive their card balance by telephone, cost-free, on an unlimited basis.
For more information, please contact Joseph Spitzzeri, Co-Chair of Johnson & Bell's Employment group.