The state of Vermont is interpreting its statute under 21 V.S.A. §343, requiring that wages be paid in cash or by check, to mean that employers may not pay wages using the new paycards (salary debit cards).

This is because paycards do not fit the definition of cash or checks under the Vermont Uniform Commercial Code. This applies even if the employer does not require employee participation in the paycard program (popular with employees without bank accounts) or pass along any costs associated with paycards to employees.