Question

The state of Kansas passed legislation in 2007 that allowed employers to select their employee pay method. The legislation was known as the "paperless payroll law," and many employers opted to give their employees paycards instead of cash, check, or direct deposit. The practice spread to many other states, including New York. In 2017, the law was revoked because it made employers into de facto financial institutions.

What are the issues with this practice? What are the benefits?

Answer the questions using at least 200 words.

Answer 1

The State of Kansas passed legislation in 2007 that allowed employers to select their employee pay method. The legislation was known as the “paperless payroll law,” and many employers opted to give their employees pay cards instead of cash, checks, or direct deposit.

Generally, Kansas law tracks federal law where a federal law also governs the conduct at issue. Some municipalities have established additional discrimination laws, providing protection beyond that provided by state law. It is important for businesses in these municipalities to be aware of such additional protections. For example, Lawrence, Kansas defines an “unlawful employment practice” to include discrimination on the basis of sexual orientation, which is not a protected class under state law (e.g., Lawrence, Kan., Code § 10-109.1 (2013)).  

Kansas has no employment laws that are unique to Kansas. Generally, Kansas law tracks federal law where a federal law also governs the conduct at issue. However, the Kansas Wage Payment Act does have some unique issues regarding payment of wages and allowable deductions that employers in Kansas should be familiar with.  

Is there any general advice you would give in the labor/employment area?

Kansas is an employer-friendly state for purposes of employment law. Over the past few years, the Kansas legislature has passed several pro-employer laws, including in the areas of wage payments, unemployment compensation, and workers’ compensation.   

Proposals for reform

Are there any noteworthy proposals for reform in your state?

The 2013 Kansas legislative session resulted in several sweeping changes to Kansas employment law. The legislature significantly amended the Kansas Workers’ Compensation Act, the Kansas Wage Payment Act, and the Kansas Security Law. Unlike in the 2013 legislative session, no widely applicable employment laws have been passed in the 2014 legislative session.