NY Department of Labor issues proposed rules on paycards

The New York State Department of Labor has published draft regulations to better manage how businesses pay workers with debit cards, in order to help protect workers’ wages. The proposed regulations, which appear the May 27 State Register (page 16), outline the responsibilities of businesses that use debit cards to pay workers and prohibit employers from profiting from or passing along costs to the employee. Under the new regulations, payment through a debit card would require advance consent, which businesses must document and keep on record for six years. The proposed changes would require employers to notify employees about local locations where they can access their wages for free. Employers would also be required to provide unlimited free ATM withdrawals within a local network and a method to withdraw the full amount of wages each pay period. Common fees like those for customer service, account maintenance, overdraft and inactivity are expressly prohibited by the new rules. The regulations will take effect following a 45-day notice and comment period.

All employers in New York State are required to give employees a wage statement or pay stub each payday. They are also required to maintain records of how long each employee works, the rate or rates of pay, how each employee is paid, itemized deductions and credits claimed by the employer (i.e., tip, meal and lodging allowances). For questions about wages or other labor standards issues, or to file a complaint, call: 888-4-NYSDOL. (NYS Register, May 27, 2015.)

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