Bill Text: NY S00832 | 2019-2020 | General Assembly | Introduced


Bill Title: Clarifies methods for the payment of wages and authorizes the payment of wages by use of payroll cards.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO LABOR [S00832 Detail]

Download: New_York-2019-S00832-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           832
                               2019-2020 Regular Sessions
                    IN SENATE
                                     January 9, 2019
                                       ___________
        Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Labor
        AN ACT to amend the labor law, in relation to clarifying methods for the
          payment of wages and authorizing  the  payment  of  wages  by  use  of
          payroll cards
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The section heading of section 192 of  the  labor  law,  as
     2  amended  by  chapter  301  of  the  laws  of 1974, is amended to read as
     3  follows:
     4    [Cash payment] Payment of wages.
     5    § 2. Subdivision 1 of section 192 of the labor law, as added by  chap-
     6  ter 475 of the laws of 1981 and as renumbered by chapter 170 of the laws
     7  of 1994, is amended to read as follows:
     8    1.  [No  employer  shall  without  the  advance written consent of any
     9  employee directly pay or deposit the net wage or salary of such employee
    10  in a bank or other financial institution.] Wages shall be paid using one
    11  or more of the following methods:
    12    a. in lawful money of the United States;
    13    b. by check payable at face value upon demand in lawful money  of  the
    14  United States;
    15    c. by electronic automated fund transfer in lawful money of the United
    16  States into an account in the name of the employee at a financial insti-
    17  tution  designated by the employee; provided that the employee voluntar-
    18  ily gives written or electronic authorization in advance to receive  his
    19  or her wages in this manner; or
    20    d.  by credit to a payroll card account in accordance with section one
    21  hundred ninety-two-a of this article, provided that the employee  volun-
    22  tarily  gives  written or electronic authorization in advance to receive
    23  his or her wages in this manner.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02883-01-9

        S. 832                              2
     1    § 3. The labor law is amended by adding a new section 192-a to read as
     2  follows:
     3    §  192-a.  Payment  of  wages  using payroll cards. 1. As used in this
     4  section:
     5    a. "payroll card" means a prepaid card used by an employee  to  access
     6  wages from a payroll card account;
     7    b.  "payroll card account" means a prepaid account that is directly or
     8  indirectly established through an employer and to which transfers of the
     9  employee's wages, salary or other compensation are made; and
    10    c. "payroll card issuer" means a financial institution or other entity
    11  that issues a payroll card to employees on behalf of their employer.
    12    2. Consent to receive wages by credit to a payroll card account  shall
    13  not be made a condition of hire or a condition of continued employment.
    14    3.  A  payroll card program offered by an employer shall be associated
    15  with a network of automated teller machines that assures the availabili-
    16  ty of a substantial number of in-network ATMs in the state.
    17    4. If an employer pays wages to employees by credit to a payroll card:
    18    a. Except as provided in paragraph b of  this  subdivision,  employees
    19  must  be  able  to  make  at  least  one withdrawal or transfer from the
    20  payroll card account in each pay period without charge for any amount up
    21  to and including the full amount of the employee's  net  wages  for  the
    22  period and one withdrawal at an in-network ATM each week without charge.
    23    b.  If  wages  are paid more frequently than weekly, employees must be
    24  able to make at least one  withdrawal  or  transfer  each  week  without
    25  charge for any amount up to and including the full amount of the employ-
    26  ee's  net  wages  for  that week and one withdrawal at an in-network ATM
    27  each week without charge.
    28    5. Employers who use payroll cards to deliver wages or  other  compen-
    29  sation to their employees must also provide employees with the option of
    30  receiving their wages or other compensation by check and electronic fund
    31  transfer  in  accordance  with  section one hundred ninety-one-c of this
    32  article.
    33    6. An employee who receives wages by credit to a payroll card must  be
    34  provided with the following:
    35    a.  A  means  of checking the employee's payroll card account balances
    36  through an automated telephone  system  and  one  additional  electronic
    37  means, without cost irrespective of number of inquiries made.
    38    b.  Access  to  an  electronic  transaction  history that includes all
    39  deposits, withdrawals, deductions, or charges by any entity from  or  to
    40  the  employee's  payroll  card  account  at no cost to the employee. The
    41  employee shall be provided one written transaction history a month at no
    42  cost upon request by the employee.
    43    c. At the employee's request, one replacement card  per  year  without
    44  cost,  except that a fee may be charged for the cost of expedited deliv-
    45  ery of a replacement payroll card if the employee requests  such  deliv-
    46  ery.
    47    7.  When  offering an employee the option of receiving wages by credit
    48  to a payroll card account, an employer must provide  the  employee  with
    49  notice of the following items in paper or printable form. Notice must be
    50  provided  in  the  languages  the  employer normally uses to communicate
    51  employment-related policies to their employees.
    52    a. a listing of all methods of wage payment offered by the employer in
    53  accordance with section one hundred ninety-two of this article;
    54    b. the terms and conditions relating  to  use  of  the  payroll  card,
    55  including  a  list  of  fees  that  may  be assessed by the payroll card
    56  issuer;

        S. 832                              3
     1    c. the methods available to  employees  for  accessing  wages  without
     2  costs;
     3    d.  the methods available to employees for checking the balance in the
     4  payroll card account without cost; and
     5    e. a statement that third parties may assess transaction fees in addi-
     6  tion to the fees assessed by the payroll card issuer.
     7    8. An employer may not use a payroll card program  that  charges  fees
     8  for  point of sale transactions; the application, initiation, loading of
     9  wages by the employer; account maintenance or  monthly  maintenance;  or
    10  mere  participation  in the payroll card program. Fees for account inac-
    11  tivity may be assessed following nine months of inactivity.
    12    9. An employee paid wages by credit to  a  payroll  card  account  may
    13  request  in  writing  to  be  paid  wages  by  another method of payment
    14  provided by the employer in accordance with section one hundred  ninety-
    15  two  of this article. Following the written request, the employer shall,
    16  within two pay periods, begin payment to the employee by  the  allowable
    17  method requested by the employee.
    18    10.  The payroll card or payroll card account may not be linked to any
    19  form of credit including, but not limited to, overdraft  fees  or  over-
    20  draft  service  fees,  a  loan  against future pay, or a cash advance on
    21  future pay or work not yet performed.
    22    11. A payroll card program offered by an employer  shall  provide  the
    23  employee   with   notices,  disclosures,  error  resolution  procedures,
    24  protections from unauthorized  use,  and  limitations  on  liability  in
    25  accordance  with  the  electronic fund transfer act, 15 U.S.C. § 1693 et
    26  seq, and regulation e, 29 C.F.R. part 1005, as may be amended.
    27    12. Wages credited to a payroll card account must be  insured  by  the
    28  Federal  Deposit Insurance Corporation, the National Credit Union Admin-
    29  istration, or another entity on a pass through basis to the employee.
    30    13. No employer shall receive any compensation, bonus, reward or other
    31  financial consideration from a payroll card issuer based upon:  (a)  the
    32  amount  or  number  of  payroll card-related fees paid by the employer's
    33  employees; or (b) the number of employees who are paid wages  through  a
    34  payroll  card  account. Nothing in this section shall preclude employers
    35  from receiving account materials or a bulk rate or volume discount based
    36  on the number of employees that receive wages  through  a  payroll  card
    37  account.
    38    14.  Where  a  collective  bargaining  agreement governs the method by
    39  which an employer must pay wages to its employees,  an  employer  cannot
    40  seek  consent  to  receive  wages  on  a  payroll card from any employee
    41  covered by that collective bargaining agreement.
    42    § 4. This act shall take effect on the ninetieth day  after  it  shall
    43  have become a law.
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