the New York State Industrial Board of Appeals revoked a New York Department of Labor regulation (“DOL regulation”) regarding wage payments made via direct deposit or payroll debit cards. The DOL regulation would have required employers to obtain a specific written consent from employees and to provide employees with specific written notice prior to paying wages via direct deposit or payroll debit cards.  

Welcome to the Compliance Center

New York State Industrial Board of Appeals Revocation of New York Department of Labor Regulation Regarding Payment of Wages via Direct Deposit or Payroll Debit Card

Mar 3, 2017

Background on the Final Rule and Details of the Change:

On February 16, 2017, the New York State Industrial Board of Appeals revoked a New York Department of Labor regulation (“DOL regulation”) regarding wage payments made via direct deposit or payroll debit cards. The DOL regulation would have required employers to obtain a specific written consent from employees and to provide employees with specific written notice prior to paying wages via direct deposit or payroll debit cards. The DOL regulation would have also restricted fees and other terms of use tied to payroll debit cards. The DOL regulation was scheduled to go into effect March 7, 2017.  

General Impact to Employers:

It is unclear if the DOL will appeal this decision or attempt to implement a revised regulation however, employers may continue to pay employees via direct deposit and payroll debit card under current law. 

Current requirements include:

  • Employees cannot be required to receive wages via direct deposit or payroll debit cards
  • An employee cannot be charged any fees related to the use of direct deposit or payroll debit cards

For more information, please reference: