S T A T E O F N E W Y O R K
________________________________________________________________________
6419--B
2013-2014 Regular Sessions
I N A S S E M B L Y
March 26, 2013
___________
Introduced by M. of A. MORELLE, STIRPE, HEVESI, ZEBROWSKI, MOSLEY,
SKOUFIS -- Multi-Sponsored by -- M. of A. SEPULVEDA -- read once and
referred to the Committee on Labor -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee -- again reported from said committee with amendments, ordered
reprinted as amended and recommitted to said committee
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:
Section 1. The section heading of section 192 of the labor law, as
amended by chapter 301 of the laws of 1974, is amended to read as
follows:
[Cash payment] PAYMENT of wages.
S 2. Subdivision 1 of section 192 of the labor law, as added by chap-
ter 475 of the laws of 1981 and as renumbered by chapter 170 of the laws
of 1994, is amended to read as follows:
1. [No employer shall without the advance written consent of any
employee directly pay or deposit the net wage or salary of such employee
in a bank or other financial institution.] WAGES SHALL BE PAID USING ONE
OR MORE OF THE FOLLOWING METHODS:
A. IN LAWFUL MONEY OF THE UNITED STATES;
B. BY CHECK PAYABLE AT FACE VALUE UPON DEMAND IN LAWFUL MONEY OF THE
UNITED STATES;
C. BY ELECTRONIC AUTOMATED FUND TRANSFER IN LAWFUL MONEY OF THE UNITED
STATES INTO AN ACCOUNT IN THE NAME OF THE EMPLOYEE AT A FINANCIAL INSTI-
TUTION DESIGNATED BY THE EMPLOYEE; PROVIDED THAT THE EMPLOYEE VOLUNTAR-
ILY GIVES WRITTEN OR ELECTRONIC AUTHORIZATION IN ADVANCE TO RECEIVE HIS
OR HER WAGES IN THIS MANNER; OR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10005-03-3
A. 6419--B 2
D. BY CREDIT TO A PAYROLL CARD IN ACCORDANCE WITH SECTION ONE HUNDRED
NINETY-TWO-A OF THIS ARTICLE, PROVIDED THAT THE EMPLOYEE VOLUNTARILY
GIVES WRITTEN OR ELECTRONIC AUTHORIZATION IN ADVANCE TO RECEIVE HIS OR
HER WAGES IN THIS MANNER.
S 3. The labor law is amended by adding a new section 192-a to read as
follows:
S 192-A. PAYMENT OF WAGES USING PAYROLL CARDS. 1. AS USED IN THIS
SECTION:
A. "PAYROLL CARD" MEANS A PREPAID CARD OR OTHER DEVICE USED BY AN
EMPLOYEE TO ACCESS WAGES FROM A PAYROLL CARD ACCOUNT;
B. "PAYROLL CARD ACCOUNT" MEANS AN ACCOUNT THAT IS DIRECTLY OR INDI-
RECTLY ESTABLISHED THROUGH AN EMPLOYER AND TO WHICH TRANSFERS OF THE
EMPLOYEE'S WAGES, SALARY OR OTHER COMPENSATION ARE MADE; AND
C. "PAYROLL CARD ISSUER" MEANS A FINANCIAL INSTITUTION OR OTHER ENTITY
THAT ISSUES A PAYROLL CARD TO EMPLOYEES ON BEHALF OF THEIR EMPLOYER.
2. IF AN EMPLOYER PAYS WAGES TO EMPLOYEES BY CREDIT TO A PAYROLL CARD:
A. EXCEPT AS PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, EMPLOYEES
MUST BE ABLE TO MAKE AT LEAST ONE WITHDRAWAL OR TRANSFER FROM THE
PAYROLL CARD ACCOUNT IN EACH PAY PERIOD WITHOUT CHARGE FOR ANY AMOUNT UP
TO AND INCLUDING THE FULL AMOUNT OF THE EMPLOYEE'S NET WAGES FOR THE
PERIOD.
B. IF WAGES ARE PAID MORE FREQUENTLY THAN WEEKLY, EMPLOYEES MUST BE
ABLE TO MAKE AT LEAST ONE WITHDRAWAL OR TRANSFER EACH WEEK WITHOUT
CHARGE FOR ANY AMOUNT UP TO AND INCLUDING THE FULL AMOUNT OF THE EMPLOY-
EE'S NET WAGES FOR THAT WEEK.
3. EMPLOYERS WHO USE PAYROLL CARDS TO DELIVER WAGES OR OTHER COMPEN-
SATION TO THEIR EMPLOYEES MUST ALSO PROVIDE EMPLOYEES WITH THE OPTION OF
RECEIVING THEIR WAGES OR OTHER COMPENSATION BY ELECTRONIC FUND TRANSFER
IN ACCORDANCE WITH SECTION ONE HUNDRED NINETY-ONE-C OF THIS ARTICLE.
4. EMPLOYEES WHO RECEIVE WAGES BY CREDIT TO A PAYROLL CARD MUST BE
PROVIDED WITH A MEANS OF CHECKING THEIR PAYROLL CARD ACCOUNT BALANCES
THROUGH AN AUTOMATED TELEPHONE SYSTEM AND ONE ADDITIONAL ELECTRONIC
MEANS, WITHOUT COST IRRESPECTIVE OF NUMBER OF INQUIRIES MADE.
5. WHEN OFFERING AN EMPLOYEE THE OPTION OF RECEIVING WAGES BY CREDIT
TO A PAYROLL CARD ACCOUNT, AN EMPLOYER MUST PROVIDE THE EMPLOYEE WITH
NOTICE OF THE FOLLOWING ITEMS IN PAPER OR PRINTABLE FORM. NOTICE MUST BE
PROVIDED IN THE LANGUAGES THE EMPLOYER NORMALLY USES TO COMMUNICATE
EMPLOYMENT-RELATED POLICIES TO THEIR EMPLOYEES.
A. THE TERMS AND CONDITIONS RELATING TO USE OF THE PAYROLL CARD,
INCLUDING A LIST OF FEES THAT MAY BE ASSESSED BY THE PAYROLL CARD
ISSUER;
B. THE METHODS AVAILABLE TO EMPLOYEES FOR ACCESSING WAGES WITHOUT
COSTS;
C. THE METHODS AVAILABLE TO EMPLOYEES FOR CHECKING THE BALANCE IN THE
PAYROLL CARD ACCOUNT WITHOUT COST; AND
D. A STATEMENT AS TO WHETHER THIRD PARTIES MAY ASSESS ADDITIONAL FEES.
6. WAGES CREDITED TO A PAYROLL CARD ACCOUNT MUST BE INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE NATIONAL CREDIT UNION ADMIN-
ISTRATION, OR ANOTHER ENTITY ON A PASS THROUGH BASIS TO THE EMPLOYEE.
7. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PREEMPT OR OVERRIDE
THE TERMS OF ANY COLLECTIVE BARGAINING AGREEMENT WITH RESPECT TO METHODS
OF AN EMPLOYER'S PAYMENT OF WAGES, SALARY OR OTHER COMPENSATION DUE TO
EMPLOYEES.
S 4. This act shall take effect on the ninetieth day after it shall
have become a law.