02 March 2020 New York appellate court decision upholds 2016 payroll debit card regulations A recent appellate court decision (Reardon v Global Cash Card, Inc. No. 526973 (NY App. Div. 3d (1-9-20)) heldthat the regulations finalized in 2016 that govern the payment of wages by direct deposit or payroll debit card are valid and enforceable by the New York Department of Labor. It is unknown at this time whether there will be a further appeal to the State Court of Appeals, the highest court in New York. (12 NYCRR Part 192 governing the Methods of Payment of Wages, which became effective March 7, 2017.) As we previously reported (EY Payroll Newsflash Vol. 18, #046, 2-22-2017), the New York Industrial Board of Appeals had ruled that the regulations were invalid because they exceeded the Department of Labor's rulemaking authority. As a result, the regulations were revoked at that time. However, in 2018, the New York Supreme Court found the Board's determination to be invalid, annulling the Board's veto and reaffirming its decision in 2019. To see all of the courts' decisions in this matter, go here. In 2017, the New York Department of Labor released model templates that employers wishing to pay wages by electronic means (direct deposit or payroll debit card) could use to notify employees of their payment options and to request their consent to receive wages by direct deposit or payroll debit card. We have requested guidance from the Department on whether the regulations will now be enforced or whether it will wait until all appeals are exhausted. In any case, employers are still required to have an employee's consent to pay by direct deposit or payroll debit card. Employees who refuse to be paid by either of these methods must be paid by cash or check. For more information, see the Department's website.
Document ID: 2020-0478 | |||||||||
