My Virtual HR Director provides outsourced payroll through our Managed Payroll Service.
Wondering if you can pay employees with a pay card? Is your payroll pay card program compliant? Review our 50-state map and legal table below outlining wage payment laws, employee consent requirements, and payroll card regulations.
Our payroll specialists and HR Experts guide employers through the risky web of payroll compliance so that they don’t have to worry about payroll compliance.
Payroll debit cards — commonly referred to as pay cards — are a lawful wage payment method in many states, but the legal framework varies significantly across jurisdictions. Some states have enacted express statutes or regulations governing payroll cards. Others remain silent, requiring employers to rely on general wage payment laws and federal Electronic Fund Transfer Act (EFTA) rules.
This 50-state table and compliance map are designed to help employers, CFOs, HR leaders, and payroll administrators quickly identify:
- Whether a state has explicit legal authority addressing payroll pay cards
- Whether pay cards may be required or must remain voluntary
- The specific statutory or regulatory citation governing payroll card programs
- The general wage payment statute that applies when no express pay card law exists
This resource serves as a compliance research tool — not as a substitute for legal advice — and is intended to support employers evaluating whether payroll pay cards are appropriate within their organization’s payroll risk framework.
50-State Pay Card Law Matrix
| State | PayCards Allowed? | PayCard Requirement Allowed?* | Pay-Card Statute / Regulation | General Wage Payment Statute |
|---|---|---|---|---|
| Alabama | No | Unclear (follow Reg E baseline) | None located (APA) | Ala. Code § 25-3-1 |
| Alaska | No | Unclear | None located | Alaska Stat. § 23.05.140 |
| Arizona | Yes | No/Unclear | Ariz. Rev. Stat. § 23-351 | Ariz. Rev. Stat. § 23-351 |
| Arkansas | Yes | No/Unclear | Ark. Code § 11-4-403 | Ark. Code § 11-4-401 |
| California | No (DLSE guidance) | No/Unclear | DLSE Opinion Letter (2008) | Cal. Lab. Code §§ 204, 212 |
| Colorado | Yes | Generally No | Colo. Rev. Stat. § 8-4-102 | Colo. Rev. Stat. § 8-4-102 |
| Connecticut | Yes | No | Conn. Gen. Stat. §§ 31-71b, 31-71k | Conn. Gen. Stat. § 31-71b |
| Delaware | Yes | No/Unclear | 19 Del. Admin. Code § 1324-2.0 | 19 Del. Code § 1102 |
| DC | No | Unclear | None located | D.C. Code § 32-1302 |
| Florida | Yes | No/Unclear | Fla. Stat. §§ 532.01, 448.24 | Fla. Stat. § 448.08 |
| Georgia | Yes | No/Unclear | Ga. Code § 34-7-2 | Ga. Code § 34-7-2 |
| Hawaii | Yes | No | Haw. Rev. Stat. §§ 388-2, 388-5.7 | Haw. Rev. Stat. § 388-2 |
| Idaho | No | Unclear | None located | Idaho Code § 45-608 |
| Illinois | Yes | No | 820 ILCS 115/14.5 | 820 ILCS 115/4 |
| Indiana | No | Unclear | None located | Ind. Code § 22-2-5-1 |
| Iowa | Yes | No/Unclear | Iowa Code § 91A.3 | Iowa Code § 91A.3 |
| Kansas | Yes | No/Unclear | Kan. Stat. § 44-314 | Kan. Stat. § 44-313 |
| Kentucky | Yes | No/Unclear | Ky. Rev. Stat. § 337.010 | Ky. Rev. Stat. § 337.055 |
| Louisiana | No | Unclear | None located | La. Rev. Stat. § 23:631 |
| Maine | Yes | No/Unclear | 26 Me. Rev. Stat. § 663 | 26 Me. Rev. Stat. § 621-A |
| Maryland | Yes | No/Unclear | Md. Lab. & Empl. § 3-502 | Md. Lab. & Empl. § 3-502 |
| Massachusetts | No | Unclear | None located | Mass. Gen. Laws ch. 149 § 148 |
| Michigan | Yes | No/Unclear | MCL § 408.476 | MCL § 408.472 |
| Minnesota | Yes | No/Unclear | Minn. Stat. § 177.255 | Minn. Stat. § 177.23 |
| Mississippi | No | Unclear | None located | Miss. Code § 71-1-35 |
| Missouri | Yes (limited) | Unclear | 1 CSR 10-8.010 | Mo. Rev. Stat. § 290.080 |
| Montana | No | Unclear | Guidance only | Mont. Code § 39-3-204 |
| Nebraska | Yes | No/Unclear | Neb. Rev. Stat. § 48-1229 | Neb. Rev. Stat. § 48-1228 |
| Nevada | Yes | No/Unclear | Nev. Rev. Stat. § 608.120 | Nev. Rev. Stat. § 608.060 |
| New Hampshire | Yes | No | N.H. Rev. Stat. § 275:43 | N.H. Rev. Stat. § 275:43 |
| New Jersey | Yes | No | N.J.A.C. 12:55-2.4 | N.J. Stat. § 34:11-4.2 |
| New Mexico | No | Unclear | None located | N.M. Stat. § 50-4-2 |
| New York | Yes | No | 12 NYCRR 192-2.3 | N.Y. Lab. Law § 191 |
| North Carolina | No (guidance) | Unclear | Guidance only | N.C. Gen. Stat. § 95-25.7 |
| North Dakota | Yes | No/Unclear | N.D. Code § 34-14-02 | N.D. Code § 34-14-03 |
| Ohio | No | Unclear | None located | Ohio Rev. Code § 4113.15 |
| Oklahoma | Yes | No/Unclear | 40 Okla. Stat. § 165.2 | 40 Okla. Stat. § 165.1 |
| Oregon | Yes | No | Or. Rev. Stat. § 652.110 | Or. Rev. Stat. § 652.120 |
| Pennsylvania | Yes | No | 7 Pa. Stat. § 6122.1 | 43 P.S. § 260.3 |
| Rhode Island | Yes | No/Unclear | R.I. Gen. Laws § 28-14-10.1 | R.I. Gen. Laws § 28-14-2 |
| South Carolina | No | Unclear | None located | S.C. Code § 41-10-40 |
| South Dakota | Yes | No/Unclear | S.D. Code § 60-11-9 | S.D. Code § 60-11-9 |
| Tennessee | Yes | No/Unclear | Tenn. Code § 50-2-103 | Tenn. Code § 50-2-103 |
| Texas | Yes | Unclear (federal constraints apply) | Tex. Labor Code § 61.017 | Tex. Labor Code § 61.016 |
| Utah | Yes | No/Unclear | Utah Code § 34-28-3 | Utah Code § 34-28-3 |
| Vermont | Yes | No/Unclear | 21 Vt. Stat. § 342 | 21 Vt. Stat. § 342 |
| Virginia | Yes | No/Unclear | Va. Code § 40.1-29 | Va. Code § 40.1-29 |
| Washington | Yes (limited) | Unclear | Wash. Rev. Code § 41.04.240 | Wash. Rev. Code § 49.48.010 |
| West Virginia | Yes | No/Unclear | W. Va. Code § 21-5-3 | W. Va. Code § 21-5-3 |
| Wisconsin | No | Unclear | None located | Wis. Stat. § 109.03 |
| Wyoming | No | Unclear | None located | Wyo. Stat. § 27-4-104 |
Where a state has no express payroll-card statute, employers must rely on the general wage payment statute + federal Reg E and treat pay cards as voluntary, with fee-free full-wage access and clear disclosures.
PAYROLL COMPLIANCE NOTE:
No matter what your state, the safest compliant approach is:
- Make pay cards optional (never a condition of hire or continued employment).
- Get written, voluntary consent and provide plain-English disclosures of all fees and access methods.
- Ensure employees can access 100% of net wages without cost (at least once per pay period) and can obtain account info/transaction history. (This is explicitly required in several states and is the practical standard everywhere.
Payroll Compliance Should Be Strategic — Not Reactive
At My Virtual HR Director, we help employers:
- Evaluate multi-state payroll compliance risks
- Audit payroll pay card programs
- Implement legally compliant wage payment systems
- Reduce exposure to payroll-related litigation
- Strengthen internal payroll controls
Whether you operate in one state or all fifty, we help you structure payroll systems that align with both operational efficiency and regulatory protection.
👉 Review Your Payroll Risk Exposure Today
If you are currently using — or considering using — payroll pay cards, schedule a compliance review before rollout.
Protect your organization. Protect your employees. Protect your payroll system.
*This page is not legal, financial, or tax advice and should not be relied upon as such. Consult your attorney for legal advice regarding your own situation or your CPA for tax advice,
Sources used:
- American Payroll Association, State and Federal Legal Authority Addressing Payroll Cards (Jan. 3, 2022) — identifies express pay-card statutes/regs by state.
- CFPB Bulletin 2013-10 (EFTA/Reg E guidance on payroll cards — no mandatory single-institution requirement; choice required).
- State code sections as cited in the APA survey (primary statutes/regulations).
Joseph Campagna, SPHR, SHRM-SCP is president and owner of My Virtual HR Director, a human resources outsourcing company serving small and medium sized businesses nationwide. My Virtual HR Director provides an executive level HR advisor to companies that can’t afford or can’t justify hiring a fulltime HR professional on staff.
With thirty years of experience dedicated to the HR profession, Mr. Campagna has honed his skills as an expert in compliance, talent management and employee relations. Bringing human capital management experience from start-ups, IT and biotechnology companies, employee leasing, and fortune 100 behemoths Mr. Campagna has filled his tool belt through generalist work, executive positions, and consulting opportunities with companies such as ADP, Merrill Lynch, and Johnson & Johnson. As Vice President of HR for biotech company Hemo Concepts, as well as the head of HR for the global IT solutions company, the Galaxy Group, Mr. Campagna created rich and successful organizational development and employee engagement programs.
Having worked with a diverse group of companies and clients in a broad spectrum of industries and environments, he brings a unique HR philosophy to every organization he works with. “HR is not the picnic department,” he says “but instead bears the full responsibility and the unlimited potential for a highly productive and efficient workforce. If HR systems are successful, the organization’s revenue should be increased.” From mergers and acquisitions, to IPO’s, to new product development, to divestiture Mr. Campagna has a true business background to support his HR Architecture.
Mr. Campagna is certified as a senior professional through both the Human Resources Certification Institute (HRCI) and the Society for Human Resource Management (SHRM). The HRCI designation of Senior Professional in Human Resources (SPHR) is an experienced-based examination certification. The SHRM certification is a competency based examination certification. Each is a premier designation in the world of HR and recognized by the Society for Human Resource Management of which Joe is a national member and former chapter president.
Mr. Campagna brings decades of helping small and medium sized businesses create HR structures such as employee handbooks, performance systems, talent management, training programs, and employee engagement. He knows how to deliver business results through HR aligned objectives.
Nearly 30 years of expertise and HR executive authority combined with a group health insurance license and certifications from the Society for Human Resource management and the Human Resources Certification Institute have given Joseph Campagna the guru status that has earned him leadership roles, board of director roles, and speaking engagements related to human resources.