Plain English Breakdown
The official text states the authorization to 'commence' (start) these programs is extended indefinitely, but does not explicitly state existing active accounts are unaffected beyond this extension.
Extending Prepaid Cards for Workers' Compensation Payments
This law removes the January 1, 2027 deadline that currently limits when employers can start programs using prepaid cards to pay workers injured on the job.
What This Bill Does
- Removes the January 1, 2027 expiration date for employer programs depositing disability payments into prepaid card accounts.
- Allows these prepaid card payment programs to continue indefinitely.
Who It Names or Affects
- Employers who pay workers' compensation benefits
- Employees injured on the job who receive disability indemnity payments
Terms To Know
- Workers' compensation
- A system that pays employees for injuries they get while working.
- Disability indemnity payments
- Money paid to workers who cannot work because of an injury or illness from their job.
Limits and Unknowns
- The bill only extends the authorization for employers to start these programs; it does not change rules requiring other written payment instruments to be immediately negotiable and payable in cash.
- The official source material provided lists the effective date as blank.