The State of New York Industrial Board of Appeals has issued a decision invalidating final paycard regulations. In addition, a resolution has been introduced in the US House of Representatives challenging forthcoming federal paycard regulations.
Under final regulations issued by the Consumer Financial Protection Bureau (CFPB) pertaining to prepaid debit and credit cards, employers that pay wages using paycards will be required to provide employees with additional disclosures as of October 1, 2017.
The New York State Department of Labor has issued final regulations governing the use of paycards and direct deposit to pay employees' wages. Although the law in New York already permits employers to pay employees via these two popular wage payment methods, the final regulations provide many new detailed requirements and restrictions. Employers should act now to be sure their procedures, policies and required forms will be in compliance by the March 7, 2017, effective date.
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News: Federal and state laws affecting payment of employee wages by direct deposit.
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