ASSEMBLY, No. 1718

STATE OF NEW JERSEY

216th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION

 


 

Sponsored by:

Assemblyman  TIMOTHY J. EUSTACE

District 38 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Concerns methods of paying wages.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act concerning methods of paying wages and amending P.L.1965, c.173 and P.L.1975, c.143.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 2 of P.L.1965, c.173 (C.34:11-4.2) is amended to read as follows:

     2.    a.  Except as otherwise provided by law, every employer shall pay the full amount of wages due to his employees at least twice during each calendar month, on regular paydays designated in advance by the employer, in lawful money of the United States or with checks on banks where suitable arrangements are made for the cashing of such checks by employees without difficulty and for the full amount for which they are drawn. An employer may establish regular paydays less frequently than semimonthly for bona fide executive, supervisory and other special classifications of employees provided that the employee shall be paid in full at least once each calendar month on a regularly established schedule.

     b.    (1)  An employer may, with the consent of some or all his employees, arrange with a financial institution or financial institutions to pay the wages of each employee so consenting by causing the amount of wages owed to that employee to be directly deposited in an account maintained in a financial institution in the name of that employee; or by causing the amount of wages owed to that employee to be deposited in a payroll debit card account maintained in a financial institution in the name of that employee. Any fees associated with these payments shall be paid by the employer, as provided in subsection b. of section 1 of P.L.1975, c.143 (C.34:11-4.2a). These payments shall be subject to withdrawal and other disposition by that employee to the same extent and in the same manner as if that deposit were made directly by that employee.

     (2)   Notwithstanding paragraph (1) of this subsection, an employer may require that employees elect one of the methods of payroll distribution provided in that paragraph (1) pursuant to subsection a. of section 1 of P.L.1975, c.143 (C.34:11-4.2a).

     c.     If a regular payday falls on a nonwork day, that is, a day on which the workplace of an employee is not open for business, payment shall be made on the immediately preceding work day, except where it is otherwise provided for in a collective bargaining agreement.

     d.    The end of the pay period for which payment is made on a regular payday shall be not more than 10 working days before such regular payday, provided that if the regular payday falls on a nonwork day payment shall be made on the preceding work day.

(cf: P.L.2002, c.93, s.1)

 

     2.    Section 1 of P.L.1975, c.143 (C.34:11-4.2a) is amended to read as follows:

     1.    a.         In lieu of paying wages [directly] to employees as provided by section 2 of P.L.1965, c.173[, s. 2] (C.34:11-4.2), an employer may[, with the consent of some or all his employees, arrange] require that employees elect one of the following methods of payroll distribution:

     (1)   An arrangement with a financial institution or financial institutions to pay the wages of [each] an employee [so consenting] by causing the amount of such employee's wages to be deposited in an account maintained in any such financial institution in the name of such employee, subject to withdrawal and other disposition by such employee to the same extent and in the same manner as if such deposit were made directly by such employee[. Any such employee may, on timely notice to the employer, elect not to have his wages deposited as provided herein, and to be paid such wages directly in the manner otherwise provided by law]; or

     (2)   An arrangement with a financial institution or financial institutions to pay the wages of an employee by causing the amount of that employee’s wages to be deposited in a payroll debit card account maintained in a financial institution in the name of that employee, subject to withdrawal and other disposition by that employee to the same extent and in the same manner as if such deposit were made directly by that employee.

     b.    The employer, and not the employee, shall pay any fee associated with the direct deposit of wages paid to an employee, or any fee associated with the deposit of wages paid to an employee in a payroll debit card account and the use of a payroll debit card for any purpose, including withdrawals at any automatic teller machine or point-of-sale transaction.

     c.     An employer that requires the payroll distribution methods provided in subsection a. of this section shall provide both methods on an equal basis and without difficulty for the employee. Any employee may, if required by an employer to use one of the payroll distribution methods provided in subsection a. of this section, upon timely notice to the employer, elect to be paid wages using the other method.

     d.    Financial institution as used herein means any State-chartered or Federally-chartered institution authorized to accept deposits in New Jersey.

(cf: P.L.1975, c.143, s.1)

 

3.      This act shall take effect immediately.

STATEMENT

 

     This bill allows an employer to require that its employees receive their wages either by direct deposit or by a payroll debit card.

     Currently, an employer may pay its employees with a paper check, cash, or, with the employee’s consent, by direct deposit or a payroll debit card. This bill will allow an employer to require payment by direct deposit or payroll debit card, in lieu of money or paper check. However, an employer will have the choice of continuing to provide employees with other payment options, such as paper checks.

     This bill also requires an employer, and not the employees, to pay any fee associated with the payment of wages by direct deposit, or any fee associated with the deposit of wages in a payroll debit card account and the use of a payroll debit card for any purpose, including withdrawals at any automatic teller machine or point-of-sale transaction.