Regulations Affecting Employers’ Method of Wage Payment Revoked

02.27.2017

The New York State Department of Labor recently drafted regulations that affected how employers pay their employees.  These pending regulations were supposed to go into effect on March 7, 2017, but have now been revoked.

Among the provisions in the proposed regulations was an announcement that employers may not require employees to accept wages via payroll debit card or direct deposit, and a requirement that if an employer offers wages paid via debit card, the employer must give employees a list of locations near the employees’ home or work location where those debit cards can be used without charge.  Under the proposed regulations, employers also had to provide its employees a description of all of the options for receiving wages. 

The revocation came after the new regulations were challenged by a company that provides payroll debit cards who argued that the Department of Labor was exceeding its authority.

This could eventually be overturned if the revocation itself is appealed but, for now, employers no longer have to comply with the changes in March.