On May 27, 2015, the New York Department of Labor proposed a regulation regarding employers’ methods of payment. In the proposed rule, there are specific requirements outlined for employers that pay their employees via check, direct deposit, and payroll debit card. The aim is to protect employees’ wages by making sure employers are not profiting from or passing costs to the employees when using payment methods like debit cards.
Under the rule, employers must first provide employees with a paper or electronic notice of the terms on the use of payroll debit cards. The notice must include the employee’s options for receiving wages, a statement that the employer does not require the employee to accept payment method and that they will not be charged any fees for using this method, and a list of locations where employees can access and withdraw wages.
Employers must receive a written consent from the employee. The consent copy must be kept by the employer during the period of the employee’s employment and for six years following the last payment. The proposed rule states that employers are prohibited from intimidating employees for refusal to accept the payroll debit card or from requiring them to use them as a condition of employment.
To get full details on the proposed regulation, click here.