Stricter payroll card rules could be in the offing in New York State Stricter payroll card rules could be in the offing in New York State

Stricter payroll card rules could be in the offing in New York State
31 Jul 2018

New York’s State Supreme Court has annulled an appellate court ruling, thereby reviving efforts to introduce stricter payroll card rules.

Reports in the National Law Review said the New York State Industrial Board of Appeals (IBA) ruling that was issued in February last year was annulled by the state’s Supreme Court in Albany County. The IBA had previously ruled against the New York State Department of Labor (NYDOL), which introduced various rules relating to payroll cards in an effort to protect employees from having to pay excessive card fees. 

The NYDOL rules required employers to educate workers on how to use payroll cards without incurring fees. Employers also had to obtain consent from workers to receive their wages via a payroll card.

At the time though, the IBA ruled that the regulations were “invalid because they exceed rule-making authority”. The NYDOL appealed the decision in May last year.

As a result of the move, the state’s Supreme Court has now annulled the IBA’s decision, declaring it to be “arbitrary and capricious”. Depending on the outcome of the appeal, the NYDOL payroll card regulations could come into effect, which would mean that local employers would need to review their payroll policies.

PYMNTS.com also reported that some states are starting to consider regulating the fees associated with virtual cards that are used for business-to-business payments. Georgia’s General Assembly recently passed legislation that bars insurance companies from forcing healthcare providers to accept payment in the form of virtual cards. Alabama recently passed similar legislation too.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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New York’s State Supreme Court has annulled an appellate court ruling, thereby reviving efforts to introduce stricter payroll card rules.

Reports in the National Law Review said the New York State Industrial Board of Appeals (IBA) ruling that was issued in February last year was annulled by the state’s Supreme Court in Albany County. The IBA had previously ruled against the New York State Department of Labor (NYDOL), which introduced various rules relating to payroll cards in an effort to protect employees from having to pay excessive card fees. 

The NYDOL rules required employers to educate workers on how to use payroll cards without incurring fees. Employers also had to obtain consent from workers to receive their wages via a payroll card.

At the time though, the IBA ruled that the regulations were “invalid because they exceed rule-making authority”. The NYDOL appealed the decision in May last year.

As a result of the move, the state’s Supreme Court has now annulled the IBA’s decision, declaring it to be “arbitrary and capricious”. Depending on the outcome of the appeal, the NYDOL payroll card regulations could come into effect, which would mean that local employers would need to review their payroll policies.

PYMNTS.com also reported that some states are starting to consider regulating the fees associated with virtual cards that are used for business-to-business payments. Georgia’s General Assembly recently passed legislation that bars insurance companies from forcing healthcare providers to accept payment in the form of virtual cards. Alabama recently passed similar legislation too.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

MORE ARTICLES THAT MAY INTEREST YOU

Saudi Arabia mandates payroll cards for domestic workers

ADP unveils payment card system for gig workers

US payroll clerk convicted of grand theft

 

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