|All Employers with NY Employees
|February 16, 2017
|Contact your OneDigital Representative
New York’s strict new debit card and direct deposit wage payment regulations, originally slated to go into effect March 7, 2017, have now been invalidated by the New York State Industrial Board of Appeals (“IBA”). The IBA stated that the regulations infringed on banking regulations that set bank fees, and that the New York State Department of Labor (“NYSDOL”) had overstepped its jurisdiction in applying these rules. The IBA also pointed to numerous similar bills introduced in the New York legislature over the years, citing the bills’ failure to come to fruition as a sign that the current regulations controlling wage payments are already satisfactory.
As part of the regulations, employers would have had expanded obligations if compensating employees through payroll debit cards or direct deposit, including new notice and consent form requirements. With the revocation of the impending regulations, the new notice and consent form requirements are no longer applicable.