New York
Employment Lawyers Offer Sound Advice on
Proposed Changes to Laws Governing Methods
of Wage Payments
Potential
rule change allows payment of wages via
payroll debit card
In May of
2015, the New York Department of Labor
publicized proposed changes to permissible
methods of payment of wages to employees. To
date, wages must be paid via cash, check or
direct deposit. The proposed changes add the
option of wage payment through a payroll
debit card. Understanding the benefits and
drawbacks of such a payment method is
important to employers and employees alike.
At
Hepworth, Gershbaum & Roth, PLLC, we
know that any changes to New York employment
laws have the potential to impact employees
throughout the state. Our employment law
attorneys are committed to maintaining a
constant awareness of proposed changes,
allowing us to offer the insight and advice
you need to understand the impact changes
may have on your income or career.
What is a
payroll debit card?
A payroll
debit card is a card that provides access to
an account with a financial institution. The
account must be officially established by
the employer, and must provide around the
clock access to the employee’s funds.
What must my
employer do to pay me via payroll debit
card?
If the
proposed changes are passed, your employer
may begin paying your wages via payroll
debit card. To do so, however, the business
must:
-
Obtain
your consent: In order to submit wage
payments vial payroll debit card, your
employer would be required to obtain
your consent in writing. Failure to do
so would violate the terms of the
proposed rule change.
-
Absorb
any applicable costs: The proposed
changes include provisions protecting
employees from incurring any costs
associated with a payroll debit card.
Any and all administrative costs would
need to be covered by the employer.
-
Provide specific information: The
proposed rule change would require your
employer to provide a wide range of
information, including a written
statement of payment, a definition of
the card program and other key data.
-
Create
a network of access: The proposed
changes would require your employer to
create a network of financial
institutions and ATMs to provide 24-hour
access to your wages. Without 24-hour
complimentary access, the program would
be in violation of the proposed rule
changes.
Meeting
these criteria would allow employers to
offer the option of a payroll debit card,
which may be an attractive option for many
employees.
Schedule a
free consultation to discuss your payroll
debit card concerns with one of our
knowledgeable New York employment lawyers
Whenever a
proposed rule change has the potential to
impact your income, it is important to
understand the proposal to its fullest. The
New York
employment law attorneys at Hepworth,
Gershbaum & Roth, PLLC are committed to
maintaining a comprehensive knowledge of
proposed rule changes in an effort to help
employees like you understand the impact
such changes may have on your finances. To
schedule a free consultation to discuss your
payroll debit card concerns with one of our
New York employment law attorneys,
contact us online or call 212-545-1199
today.
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attorney in New York today
for a free initial
consultation and determine
whether you have a case. For
a free initial consultation,
you can contact us online or
by phone.
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