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. This 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 In 2017, the law was revoked because it made employers into de facto financial institutions.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 in this practice? What are the benefits?
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