New York Revokes Proposed Direct Deposit and Debit Card Wage Payment Regulations
On February 16, 2017, the New York State Industrial Board of Appeals (IBA) issued a Resolution of Decision invalidating and revoking regulations that would have required employers to satisfy certain notice requirements and obtain employees’ informed consent in connection with payment by direct deposit or debit card as well as regulated fees charged by vendors. The IBA concluded that the prohibitions on fees contained in the regulation exceeded the scope of the NYSDOL’s authority because it regulated financial services products under Labor Law Article 6. The NYSDOL now has sixty days to appeal the IBA’s decision to the New York State Supreme Court. Until any further decision is issued, the regulation is deemed revoked and employers are not required to comply. The NYSDOL may choose to appeal the decision, or seek to implement revised regulations to comply with the IBA’s decision. In the meantime, employers should monitor the status of legal developments on this issue for employees working in the state of New York, but also remember to be mindful that other states and cities, including New York City have their own laws governing this topic.