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Minnesota repeals sunset date on payroll card provision

Minnesota has repealed the sunset date on a provision that allows employers to pay wages by means of a payroll card. The provision, passed in 2005, was set to expire May 31, 2007. In 2007, the provision was extended to May 31, 2008. The repeal of the sunset date makes the provision allowing the use of payroll cards permanent.

Employers in Minnesota may use payroll cards after obtaining an employee's voluntary, written consent for payment by this method. Consent can not be made a condition of hire or continued employment. Employers must provide a written disclosure of all wage payment options available to employees, the terms and conditions of the card account, and a list of fees that may be deducted from the account. The employee must be allowed to withdraw an amount up to the total of the employee's entire net pay in a free transaction, available on or after the employee's regular payday. (S.B. 2830, Laws 2008, approved April 3, 2008, effective April 4, 2008, amending S.B. 1495, Laws 2007, approved May 18, 2007.)

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