Alaska House passes pay-card wage bill after fee provision removed

The Alaska House passed a wage-payment bill Wednesday that would allow employers to offer pay cards as an alternative to checks or direct deposit.

SB 79 passed the House 38-2.

Supporters described pay cards as debit-card-like accounts employees could choose to use. They said the bill includes protections so employees are not charged merchant-use fees and can withdraw cash without charge.

The floor debate also touched on what the bill no longer contained. A prior House Labor and Commerce version included language meant to stop credit card companies from charging interchange fees on taxes and tips. That provision was removed in House Finance.

Rep. Zack Fields opposed the committee substitute. He said restaurants and bars had reported losing tens of thousands of dollars a year to interchange fees on taxes and tips. Rep. Bill Bynum said the House Finance version returned the bill to the pay-card issue.

The bill now goes back through the final legislative process after House changes.