Alaska

Discussion

Alaska: New Payroll Debit Card Law

Effective July 1, 2026, SB 79 permits Alaska employers to pay employees via payroll debit card. Notably, this wage payment method has historically been permitted by the state’s labor department, but is now formally codified into law with detailed requirements.  Employers may only credit wages to a payroll card account if the employee voluntarily authorizes it or has not set up direct deposit, the employee can make at least one cost-free withdrawal of their full net wages per week or pay period (whichever is longer), and the wages are insured by the FDIC or a similar deposit insurer. Employers must also notify employees of all other available wage payment options, all card-related terms, conditions, and fees, and cost-free ways to check their balance or access wages by phone or electronically. The law prohibits certain card fees outright, including fees to apply for or activate the card and fees for point-of-sale transactions. Alaska employers should review their payroll processing procedures, including any existing payroll card programs, to confirm they meet these codified requirements.

 

---

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase