Senate Bill S4392B

2013-2014 Legislative Session

Clarifies methods for the payment of wages and authorizes the payment of wages by use of payroll cards

download bill text pdf

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to labor
Jun 14, 2013	print number 4392b
Jun 14, 2013	amend and recommit to labor
Apr 23, 2013	print number 4392a
Apr 23, 2013	amend and recommit to labor
Mar 26, 2013	referred to labor

Bill Amendments

Original

B (Active)

2013-S4392 - Details

See Assembly Version of this Bill:: A6419
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §192, add §192-a, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6288
2015-2016: S2590, A3109
2017-2018: S5208, A6771
2019-2020: S832
2021-2022: S1697
2023-2024: S37
2025-2026: S60

2013-S4392 - Summary

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

2013-S4392 - Sponsor Memo

                                BILL NUMBER:S4392

TITLE OF BILL:  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

PURPOSE:

The bill would allow New York employers to provide for the payment of
wages on payroll cards.

SUMMARY OF PROVISIONS:

Section I amends the heading of section 192 of the Labor Law.

Section II amends subdivision 1 of Section 192 of the Labor Law to
specify the methods under which wages are paid wages shall be paid in
the following:

A. In lawful money of the United States

B. By check

C. By electronic automated fund transfer into an account in the same
name of the employee at a financial institution designed by the
employee

D. By credit to a payroll card in accordance with section 192-a of
this article

Section III amends the Labor Law by adding a new section 192-a which
specifies the payment of wages using payroll cards.

1) Definitions

A. "Payroll Card"

B. "Payroll Card Account"

C. "Payroll Card Issuer"

2) If an employer pays wages to employees by credit to a payroll card:

A. Employees must be allowed at least one withdrawal or transfer from
the payroll each and every pay period without charge for any amount up
to and including the full amount of the employee's wages for the
period, except as provided in paragraph B.
B. Employees must be allowed at least one withdrawal or transfer from
the payroll each and every pay period without charge for any amount up
to and including the full amount of the employee's wages for the
period, if wages are paid more frequently than weekly.
C. Fees assessed by the payroll card issuer shall not be deemed to be
deductible from wages and shall not be deemed to violate section 191
or 193 of this article.

3) If an employer offers payroll cards to deliver wages or other
compensation to their employees they must also provide the option of


receiving wages or other compensation by electronic fund transfer in
accordance with section 191-c of this article, where payroll cards and
EFT are the only methods of compensation. Employer may utilize payroll
card where EFT or financial institution not designated.

4) Employees must be provided with a means of checking their payroll
card balance through an automated telephone system and one additional
electronic means without cost.

5) Employers must be provided with notice of the following items in:

A. Terms and conditions relating to the use of the payroll card
B. Methods available to employees for accessing wages without costs
C. Methods available to employees for checking the balance in the
payroll card account without costs; and
D. A statement as to whether third parties may assess additional fees

6) Requires that wages paid on a payroll card must be insured by the
Federal Deposit Insurance Corporation, the National Credit Union
Administration, or another entity on a pass through basis to the
employee.

Section IV - This act shall take effect on the ninetieth day after it
shall have become law

JUSTIFICATION:

This legislation recognizes the benefits to employers by providing the
option to pay and to employees by providing the option to receive
wages on a payroll card. This option would give employees a safe and
reliable means to receive wages, by allowing them to access their
wages at ATMs, banks and merchant locations without having to incur
fees for check cashing or carry large amounts of cash. This bill would
also provide financial institutions with a manner to deliver services
to traditionally "unbanked" people. Payroll cards provide employers
with a less expensive way to deliver wages than paper checks, which is
particularly useful when an employee does not have access to direct
deposit services.

LEGISLATIVE HISTORY:

S6288A of 2012

FISCAL IMPLICATIONS:

None to the state

EFFECTIVE DATE:

Ninetieth day after it shall have become law.

2013-S4392 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4392

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 26, 2013
                               ___________

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:

  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 AUTHORIZATION IN ADVANCE TO RECEIVE HIS OR  HER  WAGES
IN THIS MANNER; OR
  D.  BY CREDIT TO A PAYROLL CARD IN ACCORDANCE WITH SECTION ONE HUNDRED
NINETY-TWO-A OF THIS ARTICLE, PROVIDED THAT THE EMPLOYEE  GIVES  WRITTEN
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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00711-01-3

S. 4392                             2

  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 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 WAGES FOR THAT WEEK.
  C. IF AN EMPLOYER COMPLIES WITH THE WITHDRAWAL  REQUIREMENTS  OF  THIS
SUBDIVISION  AND  THE  NOTICE  REQUIREMENT  IN  SUBDIVISION FOUR OF THIS
SECTION, FEES ASSESSED BY THE PAYROLL CARD  ISSUER  IN  ACCORDANCE  WITH
SUCH  NOTICE  SHALL  NOT BE DEEMED TO BE DEDUCTIONS FROM WAGES AND SHALL
NOT BE DEEMED TO VIOLATE SECTION ONE HUNDRED NINETY-ONE OR  ONE  HUNDRED
NINETY-THREE OF THIS ARTICLE.
  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. PRIOR TO PAYING AN EMPLOYEE'S WAGES BY CREDIT TO A PAYROLL CARD, 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 ASSES 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.
  S 4. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

2013-S4392A - Details

See Assembly Version of this Bill:: A6419
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §192, add §192-a, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6288
2015-2016: S2590, A3109
2017-2018: S5208, A6771
2019-2020: S832
2021-2022: S1697
2023-2024: S37
2025-2026: S60

2013-S4392A - Summary

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

2013-S4392A - Sponsor Memo

                                BILL NUMBER:S4392A

TITLE OF BILL:  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

PURPOSE:  The bill would allow New York employers to provide for the
payment of wages on payroll cards.

SUMMARY OF PROVISIONS:

Section I amends the heading of section 192 of the Labor Law.

Section II amends subdivision 1 of Section 192 of the Labor Law to
specify the methods under which wages are paid wages shall be paid in
the following:

A. In lawful money of the United States
B. By check
C. By electronic automated fund transfer into an account in the same
name of the employee at a financial institution designed by the
employee
D. By credit to a payroll card in accordance with section 192-a of
this article

Section III amends the Labor Law by adding a new section 192-a which

specifies the payment of wages using payroll cards.

1) Definitions
A. "Payroll Card"
B. "Payroll Card Account"
C. "Payroll Card Issuer"

2) If an employer pays wages to employees by credit to a payroll card:

A. Employees must be allowed at least one withdrawal or transfer from
the payroll each and every pay period without charge for any amount up
to and including the full amount of the employee's wages for the
period, except as provided in paragraph B.

B. Employees must be allowed at least one withdrawal or transfer from
the payroll each and every pay period without charge for any amount up
to and including the full amount of the employee's wages for the
period, if wages are paid more frequently than weekly.

C. Fees assessed by the payroll card issuer shall not be deemed to be
deductible from wages and shall not be deemed to violate section 191
or 193 of this article

3) If an employer offers payroll cards to deliver wages or other
compensation to their employees they must also provide the option of
receiving wages or other compensation by electronic fund transfer in
accordance with section 191-c of this article, where payroll cards and
EFT are the only methods of compensation. Employer may utilize payroll
card where EFT or financial institution not designated.


4) Employees must be provided with a means of checking their payroll
card balance through an automated telephone system and one additional
electronic means without cost

5) Employer's must be provided with notice of the following items in:

A. Terms and conditions relating to the use of the payroll card
B. Methods available to employees for accessing wages without costs
C. Methods available to employees for checking the balance in the
payroll card account without costs; and
D. A statement as to whether third parties may assess additional fees

6) Requires that wages paid on a payroll card must be insured by the
Federal Deposit Insurance Corporation, the National Credit Union
Administration, or another entity on a pass through basis to the
employee

Section IV - This act shall take effect on the ninetieth day after it
shall have become law

JUSTIFICATION:  This legislation recognizes the benefits to employers
by providing the option to pay and to employees by providing the
option to receive wages on a payroll card. This option would give
employees a safe and reliable means to receive wages, by allowing them
to access their wages at ATMs, banks and merchant locations without
having to incur fees for check cashing or carry large amounts of cash.
This bill would also provide financial institutions with a manner to
deliver services to traditionally "unbanked" people. Payroll cards
provide employers with a less expensive way to deliver wages than
paper checks, which is particularly useful when an employee does not
have access to direct deposit services.

LEGISLATIVE HISTORY: S6288A of 2012

FISCAL IMPLICATIONS: None to the state

EFFECTIVE DATE:  Ninetieth day after it shall have become law.

2013-S4392A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4392--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 26, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Labor  --  committee
  discharged, bill amended, 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 AUTHORIZATION IN ADVANCE TO RECEIVE HIS OR HER WAGES
IN THIS MANNER; OR
  D. BY CREDIT TO A PAYROLL CARD IN ACCORDANCE WITH SECTION ONE  HUNDRED
NINETY-TWO-A  OF  THIS  ARTICLE,  PROVIDED THAT THE EMPLOYEE VOLUNTARILY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00711-02-3

S. 4392--A                          2

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.
  C. IF AN EMPLOYER COMPLIES WITH THE WITHDRAWAL  REQUIREMENTS  OF  THIS
SUBDIVISION  AND  THE  NOTICE  REQUIREMENT  IN  SUBDIVISION FIVE OF THIS
SECTION, FEES ASSESSED BY THE PAYROLL CARD  ISSUER  IN  ACCORDANCE  WITH
SUCH  NOTICE  SHALL  NOT BE DEEMED TO BE DEDUCTIONS FROM WAGES AND SHALL
NOT BE DEEMED TO VIOLATE SECTION ONE HUNDRED NINETY-ONE OR  ONE  HUNDRED
NINETY-THREE OF THIS ARTICLE.
  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

S. 4392--A                          3

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.

co-Sponsors

2013-S4392B (ACTIVE) - Details

See Assembly Version of this Bill:: A6419
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §192, add §192-a, Lab L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6288
2015-2016: S2590, A3109
2017-2018: S5208, A6771
2019-2020: S832
2021-2022: S1697
2023-2024: S37
2025-2026: S60

2013-S4392B (ACTIVE) - Summary

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

2013-S4392B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4392B

TITLE  OF  BILL:    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

PURPOSE:    The bill would allow New York employers to provide for the
payment of wages on payroll cards.

SUMMARY OF PROVISIONS:

Section I amends the heading of section 192 of the Labor Law.

Section II amends subdivision 1 of Section 192 of  the  Labor  Law  to
specify  the methods under which wages are paid wages shall be paid in
the following:

A. In lawful money of the United States

B. By check

C. By electronic automated fund transfer into an account in  the  same
name  of  the  employee  at  a  financial  institution designed by the
employee

D. By credit to a payroll card in accordance  with  section  192-a  of

this article

Section  III  amends the Labor Law by adding a new section 192-a which
specifies the payment of wages using payroll cards.

1) Definitions

A. "Payroll Card"

B. "Payroll Card Account"

C. "Payroll Card Issuer"

2) If an employer pays wages to employees by credit to a payroll card:

A. Employees must be allowed at least one withdrawal or transfer  from
the payroll each and every pay period without charge for any amount up
to  and  including  the  full  amount  of the employee's wages for the
period, except as provided in paragraph B.

B. Employees must be allowed at least one withdrawal or transfer  from
the payroll each and every pay period without charge for any amount up
to  and  including  the  full  amount  of the employee's wages for the
period, if wages are paid more frequently than weekly.

3) If an employer offers payroll  cards  to  deliver  wages  or  other
compensation  to  their employees they must also provide the option of
receiving wages or other compensation by electronic fund  transfer  in
accordance with section 191-c of this article, where payroll cards and
EFT are the only methods of compensation. Employer may utilize payroll
card where EFT or financial institution not designated.


4)  Employees  must be provided with a means of checking their payroll
card balance through an automated telephone system and one  additional
electronic means without cost.

5) Employers must be provided with notice of the following items in:

A. Terms and conditions relating to the use of the payroll card

B. Methods available to employees for accessing wages without costs.

C.  Methods  available  to  employees  for checking the balance in the
payroll card account without costs; and

D. A statement as to whether third parties may assess additional fees

6) Requires that wages paid on a payroll card must be insured  by  the
Federal  Deposit  Insurance  Corporation,  the  National  Credit Union
Administration, or another entity on  a  pass  through  basis  to  the
employee.

Section  IV - This act shall take effect on the ninetieth day after it
shall have become law

JUSTIFICATION:  This legislation recognizes the benefits to  employers
by  providing  the  option  to  pay  and to employees by providing the
option to receive wages on a payroll  card.  This  option  would  give
employees a safe and reliable means to receive wages, by allowing them
to  access  their  wages at ATMs, banks and merchant locations without
having to incur fees for check cashing or carry large amounts of cash.
This bill would also provide financial institutions with a  manner  to
deliver  services  to  traditionally "unranked" people.  Payroll cards
provide employers with a less expensive  way  to  deliver  wages  than
paper  checks,  which is particularly useful when an employee does not
have access to direct deposit services.

LEGISLATIVE HISTORY: S6288A of 2012

FISCAL IMPLICATIONS: None to the state

EFFECTIVE DATE:  Ninetieth day after it shall have become law.

2013-S4392B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4392--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 26, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Labor  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to  said  committee  --  committee  discharged,  bill amended, 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
  D.  BY CREDIT TO A PAYROLL CARD IN ACCORDANCE WITH SECTION ONE HUNDRED
NINETY-TWO-A OF THIS ARTICLE, PROVIDED  THAT  THE  EMPLOYEE  VOLUNTARILY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00711-03-3

S. 4392--B                          2

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.

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Sponsored By

Patrick M. Gallivan

Archive: Last Bill Status - In Senate Committee Labor Committee

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George D. Maziarz

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