NY Department of Labor Publishes Final Rule for Methods of Payment

The New York Department of Labor has recently adopted the final regulation on the methods of payment by which employees must be paid. Starting March 7, 2017, employers may pay employees using cash, check, direct deposit, or payroll debit card. Individuals employed in a bona fide executive, administrative, or professional capacity whose earnings are in excess of $900 a week are not covered under the regulation.

Employers must provide a written notice and consent when using methods of payment other than cash or check. Both the notice and consent can be provided and obtained electronically as long as employees have access to view and print them. The notice must include:

  • a description of all the options for receiving wages,
  • a statement clarifying that employees cannot be required to accept wages by payroll debit card or by direct deposit,
  • a statement that employees cannot be charged for services that are necessary to access his or her wages in full, and
  • a list of locations where employees can access and withdraw wages at no charge near their place of residence or work.

The consent must be provided at least seven business days prior to issuing the payment of wages by payroll debit card. An employee may withdraw the consent at any time. Employees also need to be notified that the consent cannot be obtained by the employer using intimidation, coercion, or fear of adverse action .

The notice and consent templates in English and other languages are expected to be released by the state’s commissioner. Employers are advised to review their current methods of payment to make sure they are in compliance. To get full details on specific requirements for paying employees via check, direct deposit, and payroll debit card, click here.

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