Court Sides With New York Department of Labor on Paycard Regulations
On January 9, a New York appellate court sided with the New York Department of Labor (DOL) on the agency’s burdensome payroll card regulations [Reardon v. Global Cash Card, Inc., No. 526973 (NY App. Div. 3d (1-9-20)]. The regulations are in effect, though the state may not have been enforcing them during litigation. It is uncertain whether the case will be appealed to the state Court of Appeals (the highest court in New York).
APA was not involved in the litigation. However, APA’s Government Relations Task Force Payroll Cards Subcommittee engaged with the DOL during the rulemaking process, submitting comments and raising concerns regarding the rules, notice, and consent forms.
The New York paycard regulations (12 NYCRR §192) have many requirements for employers, including providing employees with written notice, obtaining written consent from employees, not charging fees to employees, and providing employees with 30 days’ notice before any change in paycard terms and conditions.
Notice and consent may be provided and obtained electronically, so long as an employee is given the ability to view and print both items at work, without cost to the employee, and the employee is notified of his or her right to print the items. Notice and consent templates are available on the DOL website. They are the original documents that were open for comment in early 2017 and have not been updated.
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Manager of State Payroll Information Resources for the APA.