Effective July 1, 2026, employers in Alaska are legally permitted to pay employees by payroll debit card. Although this wage payment method was already permitted by the state labor department, it is now codified in the law, which includes detailed definitions of terms and the conditions employers must meet to offer a payroll card program.

An employer may not credit an employee’s wages to a payroll card account unless:

• The employee has voluntarily authorized it or has not authorized direct deposit;
• The employee is allowed at least one cost-free withdrawal of their full net wages per week or pay period, whichever is longer; and
• Their wages are insured by the Federal Deposit Insurance Corporation or another entity that insures bank deposits.

Other key conditions include the requirement to notify employees of:

• All other wage payment options;
• All card related terms, conditions and fees; and
• Cost-free methods for accessing wages in their account and for checking account balances through automated telephone and electronic systems.

The law also restricts an employer from offering a payroll debit card account that charges specific fees (e.g., for applying for an account, initiating use of the card or making point-of-sale transactions, among others).