I 
112TH CONGRESS 
1ST SESSION H. R. 2125 
To amend the Fair Labor Standards Act of 1938 to require certain disclo-
sures by employers who use electronic payroll cards to pay their employ-
ees. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 3, 2011 
Mr. BACA introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To amend the Fair Labor Standards Act of 1938 to require 
certain disclosures by employers who use electronic pay-
roll cards to pay their employees. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Electronic Paycard 
Protection Act of 2011’’. 
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SEC. 2. DISCLOSURES AND OPTIONS RELATED TO ELEC-
TRONIC PAYROLL CARDS. 
(a) IN GENERAL.—The Fair Labor Standards Act of 
1933 is amended by adding after section 6 the following 
new section: 
‘‘SEC. 6A. DISCLOSURES AND OPTIONS RELATED TO ELEC-
TRONIC PAYROLL CARDS. 
‘‘(a) REQUIRED DISCLOSURES.—Any employer who 
pays or wishes to pay any employee by means of an elec-
tronic payroll card shall comply with the following require-
ments and provide to each such employee the following 
disclosures and options at the time the employee is pro-
vided the option to enroll in a program providing for pay-
ment using such cards: 
‘‘(1) The employee shall be provided the ability 
to access his or her full wages for the pay period 
using the electronic payroll card at least once each 
period, without any additional fee, and shall be pro-
vided the option of checking the balance available 
through the electronic payroll card through an auto-
mated telephone system or through the Internet or 
by other electronic means. 
‘‘(2) All the terms and conditions governing the 
use of the electronic payroll card, including any per-
missible fees associated with such cards, shall be dis-
closed to the employee in a clear, written manner 
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and in the language typically used by the employer 
to communicate with the employee. 
‘‘(3) No fees may be assessed to the employee 
for ordinary use of the electronic payroll card, in-
cluding for participation, initiation, adding funds to 
the card, checking the balance on the card or other 
account maintenance activities, inactivity or dor-
mancy, low balance, declined transaction, or request 
to obtain the balance on the card by check in order 
to close out the card. 
‘‘(4) The employer shall maintain the payroll 
funds that are accessible by means of the electronic 
payroll card only in an insured depository institution 
(as defined section 3 of the Federal Deposit Insur-
ance Act) or an insured credit union (as defined in 
section 101 of the Federal Credit Union Act), in an 
account or accounts for which the Federal Deposit 
Insurance Corporation or the National Credit Union 
Administration, respectively, provides pass-through 
deposit insurance based on the interest of each em-
ployee participating in the electronic payroll card 
program. The full amount of funds made available 
to each employee through an electronic payroll card 
shall be guaranteed by the employer. 
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‘‘(5) Any funds made available through the 
electronic payroll card may not expire. If the elec-
tronic payroll card expires, the employee shall be 
provided the option to terminate his or her enroll-
ment in the program or to re-enroll and be issued 
a new card without any fee. Any balance remaining 
on the expired card must be transferred in full to 
the newly issued card. 
‘‘(6) The employer is required to offer the em-
ployee the option of payment through direct deposit 
to a savings or checking account of the employee’s 
choosing in lieu of payment through an electronic 
payroll card. 
‘‘(7) The employer may not pay an employee’s 
final payment or any severance payment to any em-
ployee whose employment with the employer is dis-
continued. 
‘‘(8) An employee may not be subject to termi-
nation of employment for opting not to participate 
in any electronic payroll card program. Consent to 
participate in any such program shall not be a con-
dition of employment at the time of hiring. 
‘‘(b) DEFINITION.—As used in this section, the terms 
‘electronic payroll card’ and ‘card’ mean an access mecha-
nism, including a prepaid card, code, or device, issued to 
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an employee by an employer, or other entity by arrange-
ment with the employer, through which an employer pro-
vides an employee access to his or her wages.’’. 
(b) VIOLATION AND PENALTIES.—Section 15(a)(2) 
of such Act (29 U.S.C. 215(a)(2)) is amended by inserting 
‘‘, section 6A,’’ after ‘‘section 6’’. 
Æ 
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