342. Weekly payment of wages
(a)(1) Any employer that is doing business within the State shall pay each week, in lawful money or checks, the wages earned by each employee to a day not more than six days prior to the date of payment.
(2) Notwithstanding subdivision (1) of this subsection, any employer having one or more employees that is doing business within the State may either:
(A) after giving notice to each employee, pay biweekly or semimonthly, in lawful money or checks, each employee the wages earned by the employee to a day not more than six days prior to the date of payment; or
(B) pursuant to the terms of a collective bargaining agreement pay any employee who is subject to that agreement the wages earned by the employee to a day not more than 13 days prior to the date of payment.
(3)(A) An employee of a school district or supervisory union may elect in writing to have a set amount or set percentage of the employee’s after-tax wages withheld by the school district in a district-held bank account each pay period. The percentage or amount withheld shall be determined by the employee.
(B) At the option of the employee, the school district or supervisory union shall disburse the funds to the employee in either a single payment at the time the employee receives the employee’s final paycheck of the school year or in equal weekly or biweekly sums beginning at the end of the school year.
(C)(i) The school district or supervisory union shall disburse funds from the account in any sum as requested by the employee and, at the end of the school year or at the employee’s option over the course of the period between the current and next school year, or upon separation from employment, shall remit to the employee any remaining funds, including interest earnings, held in the account.
(ii) For employees in a bargaining unit organized pursuant to either chapter 22 of this title or 16 V.S.A. chapter 57, the school district or supervisory union shall implement this election in a manner consistent with the provisions of this subdivision and as determined through negotiations under those chapters.
(iii) For employees not in a bargaining unit, the school district or supervisory union shall determine the manner in which to implement the provisions of this subdivision (C).
(b) An employee who:
(1) voluntarily leaves employment shall be paid on the last regular pay day, or if there is no regular pay day, on the following Friday;
(2) is discharged from employment shall be paid within 72 hours of discharge;
(3) is absent from his or her regular place of employment on the employer’s regular scheduled date of wages or salary payment shall be entitled to payment upon demand.
(c) With the written authorization of an employee, an employer may pay wages due the employee by any of the following methods:
(1) Deposit through electronic funds transfer or direct deposit to a checking, savings, or other deposit account maintained by or for the employee in any financial institution within or outside the State.
(2) Credit to a payroll card account, other than a checking, savings, or other deposit account described in subdivision (1) of this subsection, that is directly or indirectly established by an employer in a federally insured depository institution to which electronic fund transfers of the employee’s wages, salary, or other compensation are made on a recurring basis, provided all the following:
(A) The employer provides the employee written disclosure in plain language, in at least 10-point type, of both the following:
(i) all the employee’s wage payment options; and
(ii) the terms and conditions of the payroll card account option, including a complete list of all known fees that may be deducted from the employee’s payroll card account by the employer or the card issuer and whether third parties may assess fees in addition to the fees assessed by the employer or issuer.
(B) The employee voluntarily consents in writing to payment of wages by payroll card account after receiving the disclosures described in subdivision (A) of this subdivision (c)(2), and the employee’s consent is not a condition of hire or continued employment.
(C) The employer ensures that the payroll card account provides that during each pay period, the employee has at least three free withdrawals from the payroll card, one of which permits withdrawal of the full amount of the balance at a federally insured depository institution or other location convenient to the place of employment.
(D) None of the employer’s costs associated with the payroll card account are passed on to the employee, and the employer does not receive any financial remuneration for using the pay card at the employee’s expense.
(E)(i) At least 21 days before any change takes effect, the employer provides the employee with written notice in plain language, in at least 10-point type, of the following:
(I) any change to any of the terms and conditions of the payroll card account, including any changes in the itemized list of fees; and
(II) the employee’s right to discontinue receipt of wages by a payroll card account at any time and without penalty.
(ii) The employer may not charge the employee any additional fees until the employer has notified the employee in writing of the changes.
(F) The employer provides the employee the option to discontinue receipt of wages by a payroll card account at any time and without penalty to the employee.
(G) The payroll card issued to the employee shall be a branded-type payroll card that complies with both the following:
(i) Can be used at a PIN-based or a signature-based outlet.
(ii) The payroll card agreement prevents withdrawals in excess of the account balance and to the extent possible protects against the account being overdrawn.
(H) The employer ensures that the payroll card account provides one free replacement payroll card per year at no cost to the employee before the card’s expiration date. A replacement card need not be provided if the card has been inactive for a period of at least 12 months or the employee is no longer employed by the employer.
(I) A nonbranded payroll card may be issued for temporary purposes and shall be valid for not more than 60 days.
(J) The payroll card account shall not be linked to any form of credit, including a loan against future pay or a cash advance on future pay.
(K) The employer shall not charge the employee an initiation, loading, or other participatory fee to receive wages payable in an electronic fund transfer to a payroll card account, with the exception of the cost required to replace a lost, stolen, or damaged payroll card.
(L) The employer shall ensure that the payroll card account provides to the employee, upon the employee’s written or oral request, one free written transaction history each month that includes all deposits, withdrawals, deductions, or charges by any entity from or to the employee’s payroll card account for the preceding 60 days. The employer shall also ensure that the account allows the employee to elect to receive the monthly transaction history by electronic mail.
(d)(1) If a payroll card account is established with a financial institution as an account that is individually owned by the employee, the employer’s obligations and the protections afforded under subsection (c) of this section shall cease 30 days after the employer-employee relationship ends and the employee has been paid the employee’s final wages.
(2) Upon the termination of the relationship between the employer and the employee who owns the individual payroll card account:
(A) the employer shall notify the financial institution of any changes in the relationship between the employer and employee; and
(B) the financial institution holding the individually owned payroll card account shall provide the employee with a written statement in plain language describing a full list of the fees and obligations the employee might incur by continuing a relationship with the financial institution.
(e) The Department of Financial Regulation may adopt rules to implement subsection (c) of this section.
(f) The employer shall provide to the employee copies of the written disclosures required by subdivisions (c)(2)(A) and (E) and by subsection (d) of this section in the employee’s primary language or in a language the employee understands
Amended 1963, No. 198, § 2; 1977, No. 44, § 1, eff. April 19, 1977; 1977, No. 244 (Adj. Sess.), § 2, eff. May 1, 1978; 1979, No. 100 (Adj. Sess.), § 1; 2009, No. 115 (Adj. Sess.), § 1, eff. May 21, 2010; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2011, No. 154 (Adj. Sess.), § 3; 2013, No. 15, § 2; 2023, No. 85 (Adj. Sess.), § 79, eff. July 1, 2024; 2025, No. 91 (Adj. Sess.), § 108, eff. April 30, 2026.
