PAYMENT OF WAGES; PAYROLL CARD ACCOUNT, the official text

Enrolled SB 79 
 Relating to wage payments; and providing for an effective date. 
 _______________ 
 * Section 1. AS 23.10.040(a) is amended to read: 
 (a) Except as otherwise provided by AS 23.10.044 and AS 37.25.050, an 
 employer of labor performing services in this state shall pay the wages or other 
 compensation for the services with lawful money of the United States or with 
 negotiable checks, drafts, or orders payable upon presentation without discount by a 
 bank or depository inside the state. 
 * Sec. 2. AS 23.10 is amended by adding a new section to read: 
 Sec. 23.10.044. Wage payment by credit to a payroll card account. (a) An 
 employer may credit employee wages to a payroll card account if an employee has 
 voluntarily authorized the credit or an employee has not authorized deposit of the 
 employee's wages under AS 23.10.043. 
 (b) An employer paying an employee's wages by credit to a payroll card 
 account shall notify the employee

(1) of the employee's wage payment options; 
 (2) of the payroll card terms and conditions, including a list of fees 
 assessed by the payroll card issuer; 
 (3) of a cost-free method for the employee to access wages credited to 
 the payroll card account; 
 (4) of a cost-free method for the employee to check the payroll card 
 account balance; and 
 (5) that, in addition to fees assessed by the card issuer, the card may be 
 subject to additional fees. 
 (c) A payroll card account must provide an employee 
 (1) at least one cost-free withdrawal each week or pay period, 
 whichever is longer, in an amount up to the amount of the employee's net wages; 
 (2) an unlimited cost-free mechanism to check the payroll card account 
 balance through an automated telephone system and an additional unlimited cost-free 
 electronic mechanism to check payroll card account balances. 
 (d) An employer may not offer a payroll card account that charges fees for 
 (1) employee application for, initiation of, or participation in the 
 payroll card account; 
 (2) issuance of an employee's initial payroll card and one replacement 
 card each calendar year; 
 (3) transfer of employee wages or other compensation from the 
 employer to the payroll card account; 
 (4) point-of-sale purchase transactions. 
 (e) An employer may not offer a payroll card account unless employee wages 
 or other forms of compensation credited to the account are insured on a pass-through 
 basis to the employee by the Federal Deposit Insurance Corporation, the National 
 Credit Union Administration, or another entity that insures bank deposits. 
 (f) This section does not limit the right of employees to bargain collectively 
 through representatives of their own choosing to establish mechanisms for payment of 
 wages in excess of the minimum requirements of this section. 
 (g) In this section,

(1) "payroll card" means a card or other device used by an employee to 
 access the employee's wages from a payroll card account; 
 (2) "payroll card account" means an employee's account established 
 through an employer to which the employer transfers the employee's wages or other 
 compensation. 
 * Sec. 3. This Act takes effect July 1, 2026.