Oklahoma has enacted legislation (Senate Bill 1345), which provides wage payment options for employers. Senate Bill 1345 takes effect on Nov.1, 2022.
Background:
Every Oklahoma employer must pay all wages due to an employee at least twice each calendar month on regular paydays. The paydays must be designated in advance by the employer.
Note: This excludes exempt employees, certain state, county and municipal employees, and certain employees of nonprivate foundations, who must be paid a minimum of once each calendar month.
The Details:
Under the new law, Oklahoma employers have the additional option (e.g. in addition to check) of paying all wages due to an employee by:
- Deposit on the payday at a financial institution of the employee’s choice. This includes a bank, savings bank, savings and loan association or credit union whose deposits are insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration or any successor institution; or
- If the employee does not consent or designate a financial institution, to a payroll card account.
A payroll card account is a prepaid account, directly or indirectly established through an employer, which receives recurring transfers of the employee’s wages, salary, or other compensation. A payroll card is a card or other device used by an employee to access wages from a payroll card account.
Next Steps:
Oklahoma employers should review their pay policies and procedures to ensure compliance with Senate Bill 1345 by November 1, 2022.
Please contact your ADP service professional if you have any questions.