Industry Applauds Revocation of New York Payroll and Direct Deposit Regulations

Posted by Michelle Mandell

Feb 24, 2017 11:44:46 AM

On February 16, New York’s Industrial Board of Appeals ruled that the regulation issued by the New York Department of Labor relating to payroll cards exceeded the department’s authority and was beyond the scope of the statute.  Global Cash Card was the only company that challenged the regulations, and below are reactions from the industry to the board's decision:


"Global Cash Card did an excellent job of demonstrating to the Industrial Appeals Board that payroll debit cards are like other financial accounts that receive wage deposits and that regulation of these accounts – as opposed to the payment of wages – is beyond the purview of the Labor Commissioner.  The end result is that employers may continue to offer, and employees may continue to enjoy, a beneficial payment option in the State of New York without needing to  jump through unduly burdensome and costly requirements to do so.  Thank you Global Cash Card!"

- Cathy S. Beyda, Of Counsel at Paul Hastings and chairs two committees on payroll cards for the American Payroll Association


"We’ve been covering the Department of Labor regulations since they were first proposed in 2015, and the industry has been vocal about the potential problems and unintended consequences that would have resulted from the implementation of these onerous rules, most notably reduced access to financial services for New York workers. There is a widespread misconception that payroll cards are a bad deal for consumers, when in fact they can be priced lower than the products consumers can get on their own. Global Cash Card’s leadership on this issue will benefit the entire industry, employers and the employees that rely on payroll cards to access their wages."
- Loraine DeBonis, Editor-in-Chief, Paybefore


"Global Cash Card’s proactive actions to assist their customers with government regulations is one of the many reasons we chose to partner with them.  This ruling will allow us to continue to offer paycards in the State of New York.  Our employees rely on the convenience of being able to get paid electronically, and the paycard is the preferred electronic payment method chosen by our workforce in New York.   Thank you Global for our wonderful partnership!"
- Lisa Harris, Vice President, Accounting Operations, True Blue Inc., People Ready


"APA members are so pleased to see these regulations revoked. The impediments they placed on businesses and on workers were unwarranted. Compared to paper checks, paying wages through direct deposit to a bank account or payroll card account is safer, less expensive, and more efficient for everyone involved. We’re grateful to Global Cash Card for championing this effort on behalf of thousands of employers and millions of New York State workers."
- Bill Dunn, Director of Government Relations, American Payroll Association


"As both the Legislative Chairman of the New York Staffing Association and the CEO of one of NY’s largest regional staffing firms, TemPositions, I would like to commend Global Cash Card for stepping up to help the industry by challenging the NYSDOL regulations on pay cards.   Although well-intentioned, the regulations as drafted did not further the interest of employees who desire to be paid by pay card, as they unnecessarily made it more difficult for employers to facilitate payment – for example, the regulations mandated an unnecessary seven day waiting period before payment to employees who consented to be paid by pay card, even though the employees had the right to revoke consent at any time.  Hopefully the Department will now listen to concerns from both the employer and pay card community and develop regulations which are less burdensome."
- James Essey, Chairman of the New York Staffing Association 


“This ruling is a game changer and will make both our employees and manager’s lives even easier with Global Cash Card!  GCC makes life easy and having New York onboard with electronic payment is going to be wonderful."

-Wendy Rose, CPP, SPHR, CAC, Payroll Manager, WIS International


"When states like NY attempt to  implement regulations that impact the way that payroll professionals can pay employees in those states it is imperative that we express the impact to not only businesses but to employees.  Through the fantastic work of Global Cash Card this revocation of the proposed changes is a huge win to the payroll profession as well as others who will be utilizing electronic means of payments."

Dee Byrd, CPP, PHR, SHRM-CP, American Payroll Association - VP, 2011 Payroll Women of the Year, Sac Valley Chapter - VP, 2016 California Statewide Board Member

"The NBPCA is pleased that the New York Department of Labor’s final rule on the methods and payment of wages has been revoked and the nearly 32 percent of New York households who rely on payroll cards will still have access to an affordable, convenient tool to receive, store and access their wages. This rule was an example of unnecessary regulatory overreach that would have ultimately harmed a vulnerable population of consumers whose access to financial services products should be protected by regulators rather than limited. We look forward to working with New York-based employers, employee groups, and other stakeholders to find ways to strengthen consumer access to payroll cards and continue to provide balanced consumer protections to New York workers."

- Brad Fauss, President & CEO, Network Branded Prepaid Card Association

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