A bill that would allow workers to receive their wages on a reloadable pay card cleared the Alaska Senate on Monday with unanimous support. The bill is being carried by the Senate Labor and Commerce Committee, chaired by Nikiski Republican Sen. Jesse Bjorkman.
“It's designed for employees who may not have a bank account to have the ability to receive their paycheck on a pay card and get access to the money through that pay card and not be subject to check cashing fees,” Bjorkman said on the Senate floor Monday.
He says the bill doesn’t prevent employers from issuing paper checks. The bill says pay cards will only be used if an employee elects to be paid using a pay card or if they don’t provide an alternative account to receive their wages. Versions of the bill have been considered by previous legislatures.
“These payroll cards function like a reloadable debit card, and employees can use these cards to make withdrawals, pay their bills or pay groceries or more,” Bjorkman told Senators.
Supporting documents attached to the bill’s page show the COVID-19 pandemic fueled demand for digital payroll options, and then pay cards are most popular among Gen Z and millennial workers.
The bill now heads to the State House.
