November 29, 2020

Volume X, Number 334

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*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.

Copyright © 2020, Sheppard Mullin Richter & Hampton LLP.National Law Review, Volume VII, Number 56
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TRENDING LEGAL ANALYSIS

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About this Author

Jonathan Sokolowski, Labor and Employment Legal Specialist, Sheppard Mullin
Associate

Jonathan Sokolowski is an associate in the Labor and Employment Practice Group in the firm's New York office.

Areas of Practice

Mr. Sokolowski's practice focuses on Labor and Employment matters, including client counseling and litigation. In particular, he has experience defending employers against single plaintiff and class action wage/hour and discrimination claims, drafting employment, severance, non-compete, and non-solicitation agreements, as well as drafting employee handbooks in compliance with state and federal law. Mr. Sokolowski also conducts...

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