Effective July 1, 2026, Alaska enacted Senate Bill 79, introducing new rules governing the use of payroll card accounts as a method of paying employee wages. The law creates a new statutory framework that allows employers to issue wages via payroll cards, while imposing specific employee protections, disclosure obligations, and fee restrictions.
New Authorization for Payroll Card Wage Payments
SB 79 amends Alaska wage payment law to expressly permit employers to pay wages by:
- Crediting wages to a payroll card account, subject to statutory conditions; and
- Doing so as an alternative to traditional payment methods such as cash, check, or direct deposit.
The amendment also updates existing statutory provisions to recognize payroll cards as a lawful form of wage payment, provided the new requirements are satisfied.
Required Employee Notifications and Disclosures
Employers that utilize payroll cards must provide clear and comprehensive notice to employees, including:
- A description of available wage payment options;
- The terms and conditions of the payroll card account;
- Any applicable fees associated with the account; and
- The methods by which employees can access wages without cost and check their account balances.
These disclosures are intended to ensure employees understand how payroll cards work and can make informed decisions regarding wage payment.
Restrictions on Fees and Cost‑Free Access Requirements
To protect employees from excessive costs, SB 79 establishes key limitations on payroll card usage:
- Employees must be able to make at least one cost‑free withdrawal per week or per pay period; and
- Employees must have access to unlimited, cost‑free methods to check account balances.
These provisions are designed to ensure employees can access their full wages without incurring recurring or burdensome fees.
Deposit Insurance Requirement
The law also includes a financial protection component. Wages deposited onto payroll cards must be:
- Insured on a pass‑through basis to the individual employee, and
- Covered by the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), or another qualifying insurer.
This requirement ensures that funds held in payroll card accounts receive the same protections as traditional bank deposits.
Employers Impacted
The law applies broadly to:
- Employers operating in Alaska that choose to use payroll cards; and
- Employees who may receive wages via payroll card accounts.
Any employer implementing payroll cards must comply with the new statutory framework.
Employer Takeaway
With an effective date of July 1, 2026, Alaska employers should ensure that any payroll card programs comply with the new requirements. Key action items include:
- Updating wage payment policies to reflect payroll card options and disclosures;
- Reviewing payroll card vendor agreements to ensure compliance with fee limitations and access requirements; and
- Implementing procedures to verify required insurance protections and provide compliant employee notices.
SB 79 aligns Alaska with a growing number of states regulating payroll card use, emphasizing transparency, accessibility, and financial protection for employees.