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July 09, 2020

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New Georgia Law Permits Use of Payroll Cards

Georgia employers now may pay employees through the use of payroll card accounts under a law signed by Governor Nathan Deal on May 5, 2015. The new law is effective immediately.

Prior to the amendment, state law (O.C.G.A. § 34-7-2) referenced only cash, check, and direct deposit (with the consent of the employee) as the permissible methods of payment of wages. The new version of the statute expressly permits employers to pay employees “by credit to a payroll card account.” 

The statute defines “payroll card account” as “an account that is directly or indirectly established through a person, firm, or corporation employing wageworkers or other employees and to which electronic funds transfers of the wages or salary of such employees are made on a recurring basis, whether the account is operated or managed by such person, firm, or corporation or a third-party payroll processor, a depository institution, or any other person.” Cash, check, and direct deposit are still permitted under the new law, but consent of the employee is required for payment by direct deposit. 

In order to use payroll cards under the new law, an employer must provide employees with the following: 

  1. A written explanation of any fees associated with the payroll card account. For current employees, this notice must be provided at least 30 days prior to the date the payroll card account is going to become available. For new employees, the notice must be provided at the time of hiring.

  2. At the same time the above notice is provided, the employer also must provide a form allowing employees to opt out of receiving payments by a payroll card account. This form must be made generally available to employees at all times. 

  3. Employees also must have the ability to later opt out of using the payroll card account by submitting a written request for payment by check or by providing the proper authorization for direct deposit. 

Jackson Lewis P.C. © 2020National Law Review, Volume V, Number 133

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About this Author

Todd Van Dyke, Employment Attorney, Sexual Harassment, discrimination, Jackson Lewis Law FIrm
Office Managing Principal

Todd Van Dyke is the Office Managing Principal of the Atlanta, Georgia, office of Jackson Lewis P.C. He litigates all types of employment law claims, including claims alleging sexual harassment, sex discrimination, disability discrimination, age discrimination, race, color, and national origin discrimination, retaliation, wrongful discharge, breach of contract, and state tort issues in federal and state courts and in arbitration.

His practice includes single plaintiff, multi-plaintiff, class and collective action cases and EEOC pattern and practice cases. Mr....

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Justin R. Barnes, Jackson Lewis, Federal Employment Lawyer, Discrimination Allegations Attorney
Principal

Justin R. Barnes is a Principal in the Atlanta, Georgia, office of Jackson Lewis P.C. He represents employers in federal and state courts and before administrative agencies on a variety of labor and employment related issues, including collective and class action wage and hour disputes, labor arbitrations, allegations of discrimination, and employment-related contract disputes.

Mr. Barnes’ practice is focused primarily on defending complex wage and hour class and collective actions in state and federal courts across the country. Mr. Barnes has recently assisted clients in defending state and federal wage and hour claims in Georgia, Arkansas, Oklahoma, New York, North Carolina, Illinois, Missouri, and Florida, among others.

404-586-1809