New York paycard rules are repealed

New York Governor Cuomo enacted on September 8, 2016, the country’s most comprehensive payroll card protections for low-wage workers (see PAYROLL MANAGEMENT GUIDE Report Letter 1476/2470, dated September 13, 2016). An estimated 13,000 businesses in New York State pay approximately 200,000 workers through debit cards that often feature hidden fees for accessing cash or checking balances. Many of the workers paid with these cards do not have a bank account, forcing them to use ATMs that require additional fees on top of those already imposed by the card issuer. In order to combat these practices. The new regulations would have governed all methods of wage payment: cash, paycheck, direct deposit or pay card. The regulations have been repealed. (State of New York Industrial Board of Appeals, Docket No. PR 16-120, February 16, 2017.)

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