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Illinois House OKs bill that takes aim at payroll cards

April 11, 2014

An Illinois bill that that takes aim at payroll cards received approval from the Illinois House on Thursday, Illinois Attorney General Lisa Madigan announced. Payroll cards, where workers receive their pay on an ATM-like card, are used by some staffing firms and other employers.

The Illinois Attorney General’s office began investigating the cards last year, and reported unreasonable fees attached to the cards. The office reported workers can be chaged fees such as a $5 account inactivity fee, a $3 fee for requesting a monthly statement of their account or 50-cent fees every time they use their card for a purchase or to check balance.

Illinois House Bill 5622, according to Madigan’s office, will:

  • Ensure employees can access their wages without incurring fees.
  • Ensure employees can access their account balances and their transaction histories without fees.
  • Place protections on payroll cards to safeguard employees.
  • Preserve employees’ right to choose the payment method that works for them, whether that method is check, direct deposit or payroll card.
  • Require employers to give employees notice of the terms of the payroll card program.
  • Prohibit fees for overdrafts, declined transactions and purchases.

The bill was crafted by Madigan’s office and sponsored by Rep. Arthur Turner. It will now go to the state Senate.