Workers’ compensation: prepaid cards.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill extends the authorization for California employers to offer a workers’ compensation program where disability indemnity payments are deposited into prepaid cards for employees. Currently, this program was set to expire on January 1, 2027, but this bill permanently allows employers to continue offering this option. The prepaid cards must meet specific requirements regarding withdrawals, ATM access, and point-of-sale purchases, and fees associated with the cards must be clearly disclosed to employees.
Key provisions
- Allows employers to continue offering a workers’ compensation program using prepaid cards.
- Prepaid cards must allow full withdrawals without fees.
- Prepaid cards must provide reasonable access to in-network ATMs.
- Prepaid cards must allow point-of-sale purchases without fees from the financial institution.
- Prepaid cards cannot be linked to credit or offer cash advances.
- Fees associated with prepaid card use are disclosed to employees.
- Permissible fees include replacement cards, out-of-network ATM fees (after the first three withdrawals), and foreign transaction fees.
- Employees can opt to change the payment method with 30 days’ written notice.
Who is affected
- Employees receiving workers’ compensation benefits
- California employers
- Workers’ compensation insurance providers
- Banks and credit unions
- Financial institutions offering prepaid cards
Bill text
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Sponsors
Official sponsors from legislative records.
1 on record
Primary sponsor
Committee on Insurance
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