NY Paycard Regulations Remain Revoked For Now
The saga of New York State’s paycard regulations continues. On May 23, New York’s Supreme Court issued a decision to annul an earlier revocation by the New York Industrial Board of Appeals of the New York Department Of Labor’s (DOL) regulations on payment by direct deposit and paycards.
While the DOL’s regulations are still revoked for now, business owners should be aware that they could go into effect later.
These regulations would, among other things:
- Require New York employers to guarantee employees’ complete access to their money free of charge (including letting them know where fee-free ATM machines are located).
- Prevent paycard companies from charging fees to employees for services.
- Compel New York employers to comply with additional requirements, which include a 7-day “cooling-off” period after obtaining employee consent.
It all started last year when national payroll card provider Global Cash Card filed a complaint with the New York Supreme Court challenging the DOL’s regulations governing payroll debit cards–regulations Global characterized as “burdensome.” The Court revoked those regulations. But in its appeal, the DOL argued that because Global isn’t an employer subject to New York’s wage payment law, it didn’t have the right to file a complaint with the Board.
Fingercheck—who offers their easy-to-use employee paycards—will keep you updated on this important story and others as they develop! Thank you for reading, and don’t forget to follow us on Facebook, LinkedIn, and Twitter so you never miss a beat.