Payroll card providers, employers, and consumers in New York can breathe a huge sigh of relief. Global Cash Card's petition against the New York Department of Labor payroll card regulations due to go into effect on March 7, 2017, has been granted. The industry had been raising red flags about the regulations, which many feared would result in providers exiting the market, since first proposed in 2015.
New York’s Industrial Board of Appeals ruled on Feb. 16 that the regulations exceeded the Labor Department’s authority and are beyond the scope of the statute. Although industry groups and individual companies had submitted comment letters objecting to various provisions in the regulations that were viewed as too onerous and inconsistent with federal Reg. E requirements, among other concerns, Global Cash Card was the only company to challenge the regulations with a formal petition. The Commissioner of Labor has 60 days to appeal the decision to a court.
“Our reasoning for filing this petition was to ensure that both employers and consumers would not be negatively affected by the proposed regulation,” said Global Cash Card President and CEO, Joseph F. Purcell. “We’re thrilled that we accomplished this for the benefit of the workforce in New York."
This article appears on Paybefore.com