A regulation issued by the New York State Department of Labor that governed the payment of employees by direct deposit or payroll debit card has been revoked by the New York State Industrial Board of Appeals. The Board said the regulation, which was set to take effect March 7, exceeded the rulemaking authority of the NYSDOL and interfered with the jurisdiction of the state’s banking and financial services regulators. A copy of the Board’s decision is available here.

Given this ruling, employers with operations in New York do not need to comply with the wage payment regulation.   

It is unknown at this time whether the Department of Labor will appeal the Board’s decision. We will carefully monitor and update on any legal developments.