Paperless Payroll: Essentials to a Seamless Transition

Understand the pitfalls you should avoid when streamlining payroll processes and the potential consequences of missteps.

Many companies, especially due to the COVID-19 pandemic, are realizing the economic benefits and increased efficiency of using technology to modernize corporate payroll processes. Companies can run into legal trouble, however, by failing to recognize that wage payment laws have not kept up pace with technological banking advancements. No overarching federal law regulates electronic forms of wage payment. As a result, companies must research and follow applicable state laws and administrative guidance when transitioning to electronic payroll processes. Employers with regional or national locations face hurdles in completely transitioning to a paperless payroll process due to the variation in state laws and administrative guidance. This topic will educate in-house counsel, human resource and payroll managers, and business managers about the variations among state laws and administrative guidance regarding electronic forms of wage payment. Specifically, this material will discuss direct deposit, pay cards, final pay, and electronic wage statements. It will also explain pitfalls companies should avoid when streamlining payroll processes and the potential consequences of missteps. This information is critical for employers who are trying to leverage payroll technologies while simultaneously insulating their companies from wage and hour liability.

Learning Objectives

• You will be able to recognize federal and state wage laws and applicable administrative guidance.
• You will be able to identify variance among state wage laws and administrative guidance regarding direct deposit.
• You will be able to identify variance among state wage laws and administrative guidance regarding paycards.
• You will be able to identify current issues and cases involving issues with paperless payroll.