The New Jersey General Assembly has introduced a bill (A.B. 4047) that would codify the use of payroll cards to deliver wages to employees. APA supports the bill but has encouraged the General Assembly “to amend A.B. 4047 to allow employers to achieve 100% electronic payment,” in a letter to the chair of the Labor Committee, which is considering the bill.
The COVID-19 pandemic has shown that electronic payment is vital for delivering wages quickly and safely, APA said. “The last two months have seen dramatic changes to our economy. Many employees that have been fortunate enough to remain employed have quickly adapted to work-from-home arrangements.”
Under New Jersey law, employers must offer employees the option of receiving their pay via paper check. Accordingly, payroll personnel must draft physical paper checks and send them via mail, resulting in otherwise unnecessary interpersonal physical contact and a slower delivery times of wages—especially where the pandemic has impacted USPS delivery service levels, APA said.
“Amending A.B. 4047 to allow employers to mandate electronic receipt of wages through the employee’s choice of direct deposit or payroll card is the right decision for employers and employees,” APA said.
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William Dunn, CPP, is Director of Government Relations for the APA.