SALT LAKE CITY — The Utah Labor Commission has changed its rules to allow private-sector employers to pay employees' wages through the use of pay cards.
Effective March 24, the rule allows employees to use the cards at ATMs to withdraw wages. They may do so once without incurring a fee, according to a news release from the commission. The move reflects a change among employers hoping to move toward paperless payroll processes. For employees who cannot cash paychecks because they do not have bank accounts, the pay card provides effective access to wages.
All other requirements of the Utah Payment of Wages Act remain in full force, so employers still must pay the employee's wages in full on the paydays designated by the employer. As with the other wage payment methods, employees paid via pay cards must be provided a written statement of deductions from their wages on each payday.
Employers can provide this statement electronically as long as the employees are given clear instructions beforehand on how to access the statement and the access can occur easily and conveniently on payday at no cost to the employee.