Governor Quinn has signed HB 5622, which amends the Illinois Wage Payment and Collection Act by recognizing payment of wages via payroll card. As we previously reported, the law does not go into effect until January 1, 2015. At that time, payment of wages via payroll card will be recognized by Illinois law, subject to a number of requirements. The requirements include the following:
- Employers must offer employees the option of receiving wages via cash, check or direct deposit and obtain employees’ voluntary consent to receive wages via payroll card
- Employers must provide written disclosures explaining the terms and conditions of the payroll card account option prior to initiating payment of wages via payroll card
- Employees must be able to withdraw their full wages from the payroll card without incurring a fee at least once per pay period and no less than twice per month