Mar. 01, 2017

Department of Labor Regulations Pertaining to Wage Payments Revoked

Department of Labor Regulations Pertaining to Wage Payments Revoked

New York State Department of Labor (DOL) regulations regarding payment of wages to employees via direct deposit or debit card, which were set to take effect March 7, 2017, have been revoked.

Previously adopted in September 2016, the regulations imposed restrictions on New York State employers paying wages by payroll debit card and direct deposit, including written notice and consent requirements applicable to the latter. The intent was to ensure workers had access to their wages in full without being subject to hidden bank fees.

While the focus of the February 16, 2017 decision to revoke the regulations, made by the New York State Industrial Board of Appeals (IBA), was primarily on the payroll debit cards and not the provisions pertaining to direct deposit, the entire regulation (12 NYCRR §192) has been revoked.

The IBA found the regulations invalid because they exceed the DOL Commissioner’s rulemaking authority, and found that the regulations infringed on banking regulations as they pertain to fees set by banks.

The DOL has 60 days to appeal the decision, should it choose to do so.