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AB 1683

Workers' compensation: prepaid cards.

2025-2026 Regular Session

AB 1683 allows California workers' compensation insurers to distribute benefits via prepaid cards with standardized protections and fee limitations for injured workers.

Enrolled and presented to the Governor at 3 p.m.
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WeVote Research Nonpartisan
Bill Summary · AB 1683

Legislative bill overview

AB 1683 requires employers and workers' compensation insurers to offer workers' compensation benefit payments via prepaid cards as an alternative to traditional payment methods. The bill standardizes requirements for these cards, including fee restrictions, access provisions, and consumer protections specific to workers' compensation recipients.

Why is this important

Workers' compensation recipients—often injured workers with limited income—currently may receive benefits solely through methods like checks or direct deposit that can be inconvenient or costly. Prepaid cards could increase accessibility and reduce barriers to accessing earned benefits, though the actual impact depends heavily on implementation details like fee structures and card terms.

Potential points of contention

  • Fee concerns: Whether prepaid card fees (ATM withdrawals, balance inquiries, monthly maintenance) could effectively reduce workers' compensation payments for vulnerable injured workers, potentially undermining the bill's intent
  • Vendor selection and accountability: Who controls which prepaid card providers are used, and whether adequate oversight exists to prevent poor service or predatory terms
  • Equity vs. convenience trade-off: Whether offering prepaid cards as an option (rather than eliminating other payment methods) adequately serves workers who lack banking access or whether it risks becoming the default for certain populations

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

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