SB 581 — An Act amending the act of December 19, 1975 (P.L.604, No.173), entitled "An act to facilitate the use of electronic funds transfer systems by providing that credits to accounts in financial institutions designated by recipients shall satisfy legal requirements for payments by cash or checks," further providing for electronic funds transfers, for consumer protections and for payroll card accounts.

Bill Text

• Printer's No. PN0588 View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill enhances consumer protections and disclosure requirements related to payroll card accounts and modifies employer obligations when switching payment methods.

• Section 2.1

  (11) In addition to the restrictions on payroll card accounts specified under this section, if an employer removes the option for an employee to receive payment by both lawful money and check and makes payment to employees by a payroll card account established at a financial institution designated by the employer in accordance with section 1.1(b) and (c):

  This adds new provisions related to fees and withdrawal limits for payroll card accounts.

• Section 2.1(4)

  Prior to obtaining an employee's authorization, the → Prior to enrolling an employee in a payroll card account, the

  This changes the wording to clarify that an employer must provide notice before enrolling an employee.

• Section 2.1(9)

  from a payroll card account to direct deposit or negotiable check. → from a payroll card account to direct deposit.

  This removes the option for employees to change to receiving payment by check.

• Section 2

  the financial institution holding the account to which transfers are made shall provide the employee or other payee with the disclosures, notices of transfer, change in term notices, access to account information and other consumer protections to the extent required by 12 CFR [Part] Pt. 1005 (relating to electronic fund transfers (Regulation E)) and 83 Fed. Reg. 30, 6364 (February 13, 2018) (relating to rules concerning prepaid accounts under the Electronic Fund Transfer Act (Regulation E)); and

  This mandates that financial institutions provide specific disclosures and consumer protections related to payroll card accounts.

• Section 1.1(b)(3)(iv)

  provide clear written or electronic notice of these changes to affected employees.

  This stipulates that employers must communicate clearly about changes to payment options.

Action History

1. October 28, 2025

   Laid on the table (Pursuant to Senate Rule 9)

2. September 08, 2025

   Re-reported as committed

3. June 23, 2025

   Re-referred to Appropriations

4. June 23, 2025

   Second consideration

5. June 09, 2025

   First consideration

6. June 09, 2025

   Reported as committed

7. April 09, 2025

   Referred to Labor & Industry

Sponsors

• Nick Miller · Primary
• Lisa Baker · Cosponsor
• Chris Gebhard · Cosponsor
• Wayne D. Fontana · Cosponsor
• Sharif Street · Cosponsor
• Christine M. Tartaglione · Cosponsor
• James Andrew Malone · Cosponsor
• Nick Pisciottano · Cosponsor

Votes

Subjects