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New York Method of Payment of Wages (Direct Deposit and Payroll Debit Cards) Has Been REVOKED !

On February 16, 2017, the New York Industrial Board of Appeals (IBA) issued a decision revoking the Department of Labor’s (DOL) impending regulations regarding the “method of payment of wages,” specifically direct deposit and payroll debit cards (including notice and consent requirements), that were set to go into effect March 7th.The IBA determined that the regulations exceeded the Department of Labor’s authority and were beyond the scope of the statute, meaning the regulation in its entirety has been revoked.

For additional information regarding the specifics on revocation click here.

The DOL has sixty days to appeal the decision, which means that until a further decision is issued the method of payment of wages regulation not enforceable. The revocation, however, has no impact on the New York Labor Law § 192 which requires an employer to obtain written authorization prior to paying an employee by direct deposit or payroll debit card; and New York Labor Law § 193 which makes it illegal to charge an employee a fee (directly or indirectly)to be paid his/her wages. 

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HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.