California Labor Code

§ 4651

LAB § 4651 Effective Jan 1, 2025Div. 4 · Part 2 · Ch. 2 · Art. 3

Statute text

(a)(1) A disability indemnity payment shall not be made by any written instrument unless it is immediately negotiable and payable in cash, on demand, without discount, at some established place of business in the state.

(2)This section does not prohibit an employer from depositing the disability indemnity payment in an account in any bank, savings and loan association, or credit union of the employee’s choice in this state, provided the employee has voluntarily authorized the deposit, nor does it prohibit an employer from electronically depositing the disability indemnity payment in an account in any bank, savings and loan association, or credit union, that the employee has previously authorized to receive electronic deposits of payroll, unless the employee has requested, in writing, that disability indemnity benefits not be electronically deposited in the account.

(3)(A) An employer may commence a program under which disability indemnity payments are deposited in a prepaid card account for the employee. The employee shall provide written consent to the employer to use a prepaid card account for the employee’s disability payments. The prepaid card account shall meet the applicable requirements of Section 1339.1 of the Unemployment Insurance Code. For purposes of this section, the terms “prepaid card” and “prepaid card account” have the same meanings as defined in Section 1339.1 of the Unemployment Insurance Code. For purposes of this section, a prepaid card shall also meet all of the following requirements:

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Legislative history

Amended (as amended by Stats. 2023, Ch. 63, Sec. 1) by Stats. 2024, Ch. 806, Sec. 1. (AB 1239) Effective January 1, 2025. Repealed as of January 1, 2027, by its own provisions. See later operative version, as amended by Sec. 2 of Stats. 2024, Ch. 806.