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Recently, New York’s Industrial Board of Appeals (IBA) revoked regulations issued by the State’s Department of Labor (NYSDOL) governing employee wage payments via direct deposit and payroll debit cards, which were scheduled to go into effect March 7, 2017. The IBA, an independent agency with certain oversight authority over the NYSDOL, held that the proposed regulations exceeded the NYSDOL’s regulatory powers.

New York employers were already prohibited from paying their employees through direct deposit without first obtaining the employees’ advance written consent. The invalidated regulations, published by the NYSDOL September 7, 2016, attempted to impose additional requirements on employers before they could pay employees via direct deposit or payroll debit cards.  A full discussion of those now defunct obligations is available here.
Continue Reading New York Wage Payment Regulations Are Revoked at the Eleventh Hour

The New York State Department of Labor (NYSDOL) recently finalized a new rule that significantly changes how employers pay their employees through direct deposit and payroll debit cards. Even though the new regulation does not go into effect until March 7, 2017, Empire State employers should begin preparing for the effective date now, especially for employees paid by direct deposit.
Continue Reading NY Makes Significant Changes to Employers’ Use of Direct Deposit and Payroll Cards

The New York State Department of Labor (NYSDOL) recently published a proposed rule governing how employers pay their employees through direct deposit and payroll debit cards. While the majority of the proposed rule focuses on new requirements regarding the use of payroll cards, the proposal, if adopted, would also effectively require every Empire State employer to obtain re-authorizations for direct deposit from all affected employees.

Requirements for Direct Deposit

New York law already prohibits employers from paying their employees through direct deposit without first obtaining the employees’ advance written consent. With the proposed rule, the NYSDOL seeks to add additional requirements regarding the use of direct deposit consent forms. First and foremost, the form would need to be provided in English and in the primary language of the employee, and must contain:Continue Reading NY Dept of Labor Proposes Drastic Changes to Employers’ Use of Direct Deposit and Payroll Cards