44-314. Pay periods; payment methods.
44-314
44-314. Pay periods; payment methods.(a) Every employer shall pay all wages due to the employeesof the employer at leastonce during each calendar month, on regular paydays designated in advanceby the employer.
(b) The employer may designate the method by which employees receivewages, provided all wages shall be paid by one or more of the followingmethods:
(1) In lawful money of the United States;
(2) by check or draft which is negotiable in the community wherein the placeof employment is located;
(3) by electronic fund transfer or deposit to an automated clearinghousemember financial institution account designated by the employee; or
(4) by payroll card.
(c) Any employer that elects to pay wages only by a method authorizedin subsection (b)(3) shall offer an alternative payment method as a defaultoption for employees that fail to designate a financial institution account forelectronic fund transfer or deposit.
(d) Any employer that elects to pay wages using a payroll card as authorizedin subsection (b)(4) shall allow employees at least one means of fund accesswithdrawal per pay period at no cost to the employee for an amount up to andincluding the total amount of the employee's net wages, as stated on theemployee's earnings statement.
(e) Not less than 30 days prior to implementing a payroll program using onlythe methods authorized in subsection (b)(3) or (b)(4), an employer shalleither:
(1) Conduct one or more employee forums to educate employees regarding theuse of a direct deposit or payroll card program offered by the employer; or
(2) distribute educational information to employees about direct deposits orpayroll cards as they may be used under the payroll card program offered by theemployer.
(f) (1) Employers shall retain no interest in wages paid by electronicfunds transferred to an employee's payroll card account, other than the rightto correct inadvertent overpayments in accordance with the rules governingdirect deposit.
(2) An employer may not charge an employee initiation, loading or otherparticipation fees to receive wages payable in an electronic fund transfer to apayroll card account, with the exception of the cost required to replace alost, stolen or damaged payroll card.
(g) As used in this section:
(1) "Payroll card" means a card, issued to an employee by an employer, a bankor other entity on behalf of an employer, onto which an employee's net wagesare loaded on regular paydays from a payroll card account and made accessibleto an employee. A payroll card is a machine readable instrument for purposes ofK.S.A. 9-1111d, and amendments thereto.
(2) "Payroll card issuer" means an employer, a bank or other entity thatissues a payroll card to an employee under an employer payroll card program.
(3) "Payroll card account" means an account into which an employer depositseach participating employee's net wages on regular paydays through anelectronic fund transfer.
(h) The end of the pay period for which payment is made ona regular payday shall be not more than 15 days before such regular paydayunless a variance in such requirement is authorized by state or federal law.
History: L. 1973, ch. 204, § 2; L. 1976, ch. 370, § 5;L. 1996, ch. 143, § 2;L. 1999, ch. 69, § 2;L. 2007, ch. 132, § 1; July 1.