SACRAMENTO, Calif. (AP) — Cash, checks and direct deposit are the only official ways to pay employees, but a bill approved by the state Assembly would add payroll cards to that list.
Employees make purchases with the cards as they would with gift cards, except the money comes from employers, who refill them every payment cycle.
AB51 explicitly authorizes the cards as a form of wages, although they already have been rising in popularity since Visa and MasterCard entered the payroll card business.
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With a 51-27 vote Thursday, the Assembly approved the bill, which heads to the Senate.
Assemblywoman Mariko Yamada, D-Davis, introduced the bill to regulate the cards because state law overlooks them. Her legislation prevents employers from excluding other payment options or charging fees for the cards.
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