*UPDATE* New York State Department of Labor’s Direct Deposit and Debit Card Notice Regulations Held Invalid and Revoked
As we previously reported here, the New York State Department of Labor (“NYSDOL”) issued final regulations in September 2016 imposing new notice and consent requirements on employers who pay wages via direct deposit and debit card. The regulations, which were scheduled to take effect on March 7, 2017, have been invalidated and revoked by the New York State Industrial Board of Appeals (“IBA”) which recently issued a decision finding, among other things, that the NYSDOL’s regulations exceeded its rulemaking authority by imposing restrictions on financial institutions.
Although the NYSDOL has 60 days in which to appeal the IBA’s decision, employers will not be required to comply with the regulations on March 7th. We will continue to keep you apprised of any further updates on this matter.