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In an increasingly cashless society, many employers are considering moving to payroll debit cards to provide workers with greater flexibility and convenience. ...more
Seyfarth Synopsis: The New York Department of Labor has mounted a challenge to the successful appeal of its promulgated regulations governing payment to employees via payroll debit cards and direct deposit. The regulations...more
A New York regulation establishing conditions for the payment of wages by direct deposit or debit card scheduled to take effect on March 7, 2017, has been invalidated and revoked by the state's Industrial Board of Appeals...more
On February 16, 2017, the New York State Industrial Board of Appeals (“IBA”) issued an order revoking changes to New York State’s regulation governing employers that pay their employees by direct deposit or debit card. This...more
Employers in Pennsylvania will be able to pay employee wages using payroll debit cards under an amendment to the banking code signed by Governor Tom Wolf on November 4, 2016. The new legislation goes into effect 180 days...more
We have been following litigation in Pennsylvania challenging the use of payroll debit cards by employers to pay employees. In one such case, the Pennsylvania Superior Court recently ruled that an employer violated the...more
On November 4, 2016, Pennsylvania Governor Tom Wolf signed into law a bill that brings the Commonwealth’s law regarding payroll debit cards into the 21st century. The new legislation amends Pennsylvania’s Banking Code, and...more
As regular readers of our blog know, we have been following a pending class action lawsuit challenging a Pennsylvania employer’s use of payroll debit cards to pay its employees. There has been a key development in that case. ...more
The New York Department of Labor has adopted a regulation that reiterates an employer generally must obtain written consent to pay wages by direct deposit of wages and clarifies the legality of paying wages with payroll debit...more
On September 7, 2016, the New York State Department of Labor published final regulations on the methods by which employees must be paid, including with respect to direct deposit of wages and payroll debit cards. The...more
On June 15, 2016, the New York State Department of Labor (“NYSDOL”) published a proposed rule governing the permissible methods for an employer in New York to pay wages to employees. The most radical change is that all...more
On June 7, 2016, Connecticut Governor Dannel P. Malloy signed into law a new statute authorizing employers to use payroll cards to pay employees. Previously, the Connecticut Department of Labor's position was such cards were...more
On October 28, 2015, the New York State Department of Labor (NYSDOL) published revised proposed regulations modifying its draft regulations (which were initially published on May 27, 2015) governing permissible methods of...more
On November 18, 2013, the Assembly introduced a bill (A4424) amending the current wage payment law to permit employers to pay wages by deposit in a payroll debit card account. This practice...more
In a recent blog post, we discussed the legal issues associated with employer use of payroll debit cards in lieu of printed paychecks. We concluded that because of the lack of federal and state regulatory guidance on the...more
In the age of technology and convenience, some businesses, particularly those with multi-state operations, are turning away from issuing paychecks to employees or paying them by direct deposit. Instead, some are opting to...more
It was recently reported that a worker at a Pennsylvania McDonald’s sued her employer, a McDonalds’s franchisee, because she was required to receive her pay in the form of a debit card that carried hefty charges for virtually...more