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New York DOL Methods of Payment Rule Revoked

4
Apr 2017
Posted in Client Updates

We want to let you know that the New York Department of Labor’s (NY DOL) final rule on the Methods of Payment of Wages which was scheduled to take effect on March 7, 2017, has been revoked. This rule was regarding the permissible methods of wage payment and new notice and consent requirements for employees being paid by direct deposit or payroll debit cards (paycards) in New York.

The rule created burdensome requirements for employers paying employees via direct deposit and payroll cards, including the obligation to provide a written or electronic notice to both current and new employees who are paid through these methods.
On February 16, 2017, the New York Industrial Board of Appeals ruled that the regulations exceeded NY DOL’s authority and were beyond the scope of New York Labor Law §192. The Commissioner of Labor has 60 days to appeal. We will continue to monitor developments and communicate any changes to you.

Remember – although you are no longer required to prepare notice and consent forms as outlined in the rule, you can’t mandate that your employees are paid using direct deposit. Your employees must voluntarily consent to these payment methods in writing.

Click here for the Employee Direct Deposit Form that can be used as written authorization.

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