Effective November 1, 2022, employers will be permitted to pay Oklahoma employee wages via payroll card, if the employees do not consent or designate a financial institution for payment of wages via direct deposit [S.B. 1345, L. 2022].
Definitions
Under the law, "payroll card" is defined as a card or other device used by an employee to access wages from a payroll card account. A "payroll card account" is defined as a prepaid account that is directly established through an employer and to which transfers of the employee's wages, salary, or other compensation are made on a recurring basis.
Requiring Paperless Pay
Effective November 1, 2022, employers in the state may choose to pay all wages due to an employee via deposit on the payday at a financial institution of the employee's choice (e.g. direct deposit), or if the employee does not consent or designate a financial institution, to a payroll card account.
Currently, an employer cannot require the use of paycards in Oklahoma, pursuant to an opinion letter that was issued in 2009 (Oklahoma Attorney General Opinion No. 09-31, 11-17-09).
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA.