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HD 671

An Act protecting wages of employees who receive wages through an electronic wage card

194th Legislature (2025-2026) Introduced by Tackey Chan and 1 co-sponsor

Requires employers paying via payroll cards to provide fee-free access to net wages (at least one withdrawal per pay period) and free balance checks with clear fee disclosures.

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Bill Summary · HD 671

Summary of House Bill HD 671: An Act Protecting Wages of Employees Who Receive Wages Through an Electronic Wage Card

Quick overview

  • Bill number: HD 671
  • Title: An Act protecting wages of employees who receive wages through an electronic wage card
  • Introduced: January 10, 2025 (House Docket No. 671)
  • Sponsors: Representatives Tackey Chan (Quincy) and Francisco E. Paulino (Methuen)
  • Purpose: To provide explicit protections for employees paid via payroll (electronic wage) cards and to ensure access to wages without excessive or hidden fees, aligning payroll card protections with federal standards under the Electronic Fund Transfer Act (EFTA) and Regulation E.

Purpose and intent

The bill seeks to safeguard employees who are paid through payroll cards by:
- Clarifying the definition of a "Payroll card account" and ensuring it includes the consumer protections that apply to such accounts under federal law.
- Requiring employers that pay wages using payroll cards to offer employees fee-free access to their net wages and to provide clear, ongoing access to account information.

Key provisions

1) Definition addition (Section 1)
- Adds a formal definition of "Payroll card account" to Chapter 149, aligning it with prepaid payroll accounts used by employers.
- Specifies that these accounts should carry the consumer protections applicable to payroll card accounts under the Electronic Fund Transfer Act (EFTA) and Regulation E, including the compulsory use provision (as may be amended).

2) Employer obligations and disclosures (Section 2)
- No-charge access: Employers paying wages by payroll card must allow at least one withdrawal per pay period without charge, up to the full net wages for that period, with withdrawals not needed more often than once per week.
- Fee disclosures: Any fees after the initial transaction must be disclosed in advance to the employee. Employers are not responsible for third-party fees outside their control.
- Balance access: Employees must be able to check their payroll card balances at no cost, via either an automated telephone system or online, with unlimited inquiries without charge.

Who is affected

  • Primary: Employers who issue wages through payroll cards.
  • Employees: Workers paid via payroll cards will gain guaranteed fee-free withdrawal options (at least one per pay period) and free balance-check access.
  • Payroll card providers: May be indirectly affected by enhanced disclosure requirements and provisioning of balance-check tools.

Procedural and timeline notes

  • Status: Classified as a proposed bill in the provided material; no enacted status is listed.
  • Legislative vehicle: Amends Chapter 149 of the General Laws (Massachusetts), adding definitions and requirements related to payroll card accounts and how wages are accessed.
  • Effective date: Not specified in the excerpt; typical enacted bills include an effective date or phased implementation, which is not stated here.
  • Related measure: Similar matter previously filed in 2023-2024 (House No. 1841).

Potential impact

  • Employee protections: Greater transparency and cost-free access to wages when paid by payroll card.
  • Employer compliance: Increased administrative duties to ensure fee disclosures and accessible balance information; potential changes to payroll card program practices.
  • Financial sector alignment: Brings Massachusetts payroll card practices in line with federal protections under EFTA and Regulation E.

Notes for readers

  • The bill expressly ties payroll card protections to federal consumer protections, including disclosures of fees and access to balance information.
  • Some specifics, such as the effective date and any implementation timeline, are not provided in the excerpt.

Compiled from official sources — confirm details with the bill’s official record.

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