Some New York employers provide their employees with their wages using a payroll debit card. The New York Department of Labor sought to regulate this payment of wages via debit payroll cards by requiring employers starting March 7, 2017, to provide access to one or more automatic teller machines that offer withdrawals at no cost to the employee (12 NYCRR 192-2.3 [b] ) and prohibit payroll debit card issuers from charging an employee certain fees related to use of a payroll debit card (id § 192-2.3 [c]).
Global Cash Card, Inc., a payroll debit card vendor providing custom payroll debit card programs to employers in New York, filed a petition with the Industrial Board of Appeals pursuant to Labor Law § 101 for review of the New York State’s regulations related to methods of payment of wages.
The Industrial Board of Appeals found that the New York Department of Labor’s regulations were invalid because they exceeded the Department of Labor’s rulemaking authority of governing the relationship between employers and employees by placing restrictions on financial institutions with respect to the fees incurred for payroll debit cards. Therefore, the Industrial Board of Appeals rescinded the Department of Labor’s regulations regarding payroll debit cards and those regulations will not go into effect on March 7, 2017.
A copy of the full decision of the Industrial Board of Appeals can be found at: http://industrialappeals.ny.gov/decisions/pdf/pr-16-120.pdf