The New York State Industrial Board of Appeals has ruled the Commissioner of Labor exceeded his authority when he issued regulations governing how employers could pay their employees using debit cards and direct deposit. The new regulations were to have taken effect March 7.
The regulations would have barred employers from requiring employees to be paid by debit card or direct deposit. Debit card balances would have had no expiration date under the regulations. Employers also would have had to provide employees with a list of all available options for receiving pay and a list of nearby banks where employees could receive their pay without incurring a fee.
Note: Employers that had already transitioned to life under the new regs should consult an attorney to determine what options are available. The labor commissioner is weighing whether to appeal the decision, so employers should monitor developments.