Payroll cards in Minnesota

• Payroll card issuer online registration

Employees in Minnesota may receive their wages via a payroll card.

If any employer issues or plans to issue payroll cards as a method of paying employees’ wages, they must first either file notice and register with the department or they must work through a payroll company that is registered with the department.

Employers may offer payroll accounts as a method of payment but cannot require that employees receive wages through payroll card account as a condition of employment. Prior to paying employees with payroll cards, employers are required to:

• provide a plain-language, written notice to employees regarding the employee’s wage payment options and the terms and conditions of the payroll card account option; and 

• obtain a voluntary, written consent from employees opting in to the program. 

Employers may be required to offer the written notice and consent materials in languages other than English.

Employees may not be paid via payroll card account unless they consent and employees may request to be paid wages by other legal methods. If the employee requests to be paid in another manner, the employer must provide a form on which the employee designates the change. Employers have 14 days from the date they receive notice of the requested change to begin paying in the alternate method.

When an employee is paid by payroll card account, they do not receive a physical check on payday. Instead, the employee’s wages are deposited into an account accessible through the payroll card. The employee must receive their wages on their regular payday. A payroll card can be used similar to a debit card. An employee can either keep a balance on the card to use at an automated teller machine (ATM) or a retail establishment or they can withdraw all or part of the funds as cash. 

Payroll card account issuers are limited in the fees they can charge to employees. Under the law, they cannot charge fees for transactions such as:  initiation fees; participation fees; loading fees; withdrawal fees; inactivity or dormancy fees; or any fees not disclosed to the employee.

For more information

Contact us at dli.laborstandards@state.mn.us, 651-284-5075 or 888-342-5354.