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UPDATE:<\/span> On February 16, 2017, the New York Industrial Board of Relations revoked this law<\/a>. Employers, for now, do not need to comply with the new regulations. However, they still must abide by current laws regarding debit card and direct deposit payments to employees.\u00a0<\/strong><\/em><\/p>\n In September of 2016, the New York Department of Labor adopted final rules which regulate wage payment methods\u00a0in the state. These rules take effect on March 7, 2017<\/strong>. Employers who pay wages by any method other than cash or check, including direct deposit and payroll cards, must adhere to these New York payroll card and direct deposit\u00a0regulations.<\/p>\n The first requirement for affected employers is to get the employee’s consent to receive wages by a method other than cash or check, such as payroll cards or direct deposit. In order to obtain consent from employees, a notice and consent form must be distributed to all affected employees. This notice and form must include:<\/p>\n Employee consent must be obtained without any kind of pressure from the employer to be paid by payroll card or direct deposit, and employers may not base continued employment on whether or not an employee consented to be paid in such a manner.<\/p>\n Employees must be able to view and print the notice and consent from their workplace without any cost. The notice and consent must be available in both English and the employee’s primary language, if applicable. Download the payroll card consent form here<\/a>, and the direct deposit consent form here<\/a>.<\/p>\n Once an employer distributes the notice and obtains consent, in order to pay wages via a payroll card they must:<\/p>\n For employers who pay employees via\u00a0direct deposit, they must maintain a copy of the employee\u2019s consent throughout\u00a0the employee\u2019s tenure\u00a0and for six years after\u00a0the employee’s final direct deposit payment. Also, employees must be provided with a copy of their\u00a0written direct deposit consent and employers must ensure the\u00a0direct deposits are\u00a0made to the\u00a0financial institution selected by the employee.<\/p>\n Again, these new regulations take effect on March 7, 2017, and they\u00a0apply to all employees who work in New York State\u00a0except those who are overtime-exempt under the new rule published last December<\/a> (executive and administrative employees who are over the minimum salary requirement). Employers should also check with their payroll card vendors to make sure their contracts are compliant with the new regulations.<\/p>\n\n
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