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BILL AS INTRODUCED 2007-2008

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S.26

Introduced by Senator Cummings of Washington District

Referred to Committee on

Date:

Subject:  Labor; employment practices; payment of wages

Statement of purpose:  This bill proposes to authorize the payment of wages by debit card.

AN ACT RELATING TO ELECTRONIC PAYMENT OF WAGES

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  21 V.S.A. §§ 342 and 343 are amended to read:

§ 342.  WEEKLY PAYMENT OF WAGES

(a)  Any person having employees in his service doing and transacting business within the state shall pay:

(1)  Pay to those employees each week, in lawful money or checks, each of his employees, the wages earned by such each employee to a day not more than six days prior to the date of such payment.

(b)(2)  After giving written notice to his the employees, any person having employees in his service doing and transacting business within the state may, notwithstanding subsection (a) of this section, pay bi-weekly or semi-monthly in lawful money or checks, each of his employees, employee the wages earned by the employee to a day not more than six days prior to the date of the payment.  If a collective bargaining agreement so provides, the payment may be made to a day not more than 13 days prior to the date of payment.

(c)(1)(b)  An employee who voluntarily:

(1)  Voluntarily leaves his employment shall be paid on the last regular pay day, or if there is no regular pay day, on the following Friday.

(2)  An employee who is Is discharged from employment shall be paid within 72 hours of his discharge.

(3)  If an employee is Is absent from his or her regular place of employment on the employer's regular scheduled date of wages or salary payment such employee shall be entitled to such payment upon demand.

(d)(c)  With the written authorization of an employee, an employer may pay wages due the employee by deposit:

(1)  Deposit through electronic funds transfer or other direct deposit systems to a checking, savings, or other deposit account maintained by or for the employee in any financial institution within or without the state.

(2)  Credit to a prepaid debit card or card account from which the employee may withdraw or transfer funds, provided the employer makes full disclosure of any applicable fees and acquires affirmative consent from the employee.  The employer shall provide to the employee at least one free means of access to the full amount of the employee’s wages from the card or card account each pay period. 

§ 343.  FORM OF PAYMENT

Such An employer shall not pay its employees with any form of evidence of indebtedness, including, without limitation, all scrip, vouchers, due bills, or store orders, unless:

(1)  the employer is a cooperative corporation in which the employee is a stockholder.  However, such a cooperative corporation shall, upon request of any such shareholding employee, pay him the shareholding employee as provided in section 342 of this title; or

(2)  payment is made by check as defined in Title 9A or by electronic fund transfer as provided in subsection 342(b) or (c) of this title.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us