Can we offer pay cards to our California employees?

Possibly but with strict limitations. Wages must be payable in cash without fees at a California location, so any pay card that charges transaction fees would violate the law.

Under Labor Code Section 212, wages must be paid by cash, check, or direct deposit (with the employee’s voluntary consent). Pay and debit cards involve direct deposit, so their use must be voluntary. Employers cannot require employees to use pay cards.

Pay cards have not been clearly addressed by California courts. If offered, employers must still provide itemized wage statements as required by Labor Code Section 226.

In a 2008 opinion letter, the DLSE stated that the use of payroll debit cards and money