Home

June 1, 2015 Labor /Human Resources Committee News

Contact: Frank Kerbein

Proposed regulations governing the use of pay cards

The Business Council is seeking input from HR/Labor Committee members on proposed regulations governing the use of pay cards. Note that this proposed rulemaking also would impose additional requirements on the use of paychecks as well. 

On May 27th, the NYS Department of Labor published in the NYS Register proposed regulations providing clarification and specifications as to the permissible methods for the payment of wages, including guidance on the use of payroll debit cards. regulations providing clarification and specifications as to the permissible methods for the payment of wages, including guidance on the use of payroll debit cards. Click here for the proposed rules.

Specifically, these regulations would put additional burdens on employers in providing to employees a list of financial institutions that would be willing to cash checks or redeem pay cards without charging transaction fees.

Key provisions:

The Department has no public hearings scheduled, and is accepting comments through July 10th. This proposal raises numerous concerns for employers and financial institutes alike, and we will be submitting extensive comments on this proposal.

The Business Council has concerns as to how these proposed rules would impact employers and we want to know what you think. Please contact me with any comments you may have.