Key Takeaways
Impacted Employers: All Alaska Employers
Effective Date: July 1, 2026
Summary of Change: Alaska employers are allowed to use payroll cards to pay employee wages.
The Details
Effective July 1, 2026, Alaska employers may pay their employee’s wages with a payroll card if the employee has authorized the payment or if the employee has not authorized wage payments through direct deposit.
An employer paying wages by payroll card must notify employees of the following:
· The employee’s wage payment options.
· The payroll card’s terms and conditions, including a list of fees assessed by the payroll card issuer.
· A cost-free method available to the employee to access wages credited to the payroll card account.
· A cost-free method for the employee to check the payroll card account.
· Whether the payroll card is subject to any additional fees.
Additionally, a payroll card account must provide the employee with:
· At least one cost-free withdrawal each week or pay period, whichever is longer, in an amount of the employee’s net wages.
· An unlimited cost-free mechanism through an automated telephone system as well as an additional cost-free unlimited electronic mechanism to check payroll card account balances.
Employers cannot offer a payroll card that charges fees for:
· An employee’s application for, initiation of, or participation in the payroll card account.
· Issuing the employee’s initial payroll card and one replacement card each year.
· Transferring employee wages or compensation from the employer to the payroll card account.
· Point-of-sale purchase transactions.
Next Steps
Alaska employers should review SB 79 to ensure they follow all the necessary steps prior to offering their employees a payroll card option for wage payments.