Hunton Employment & Labor Perspectives

It is very common for employers to pay employees by direct deposit, and an increasing number pay employees with payroll debit cards.  Beginning March 7, 2017, employers in New York will have to deal with a new regulation regarding the use of direct deposit and payroll debit cards for payment of wages.  The new regulation, issued by the New York Department of Labor and titled “Methods of Payment of Wages,” imposes heightened notice and consent requirements on employers offering either service.

As payroll debit cards receive increased scrutiny from state agencies, the plaintiff’s bar, and the media, employers using debit cards to pay their employees’ wages should review their practices to ensure they are compliant with existing state laws and recommended best practices.