S T A T E   O F   N E W   Y O R K
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                                  5968

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              March 9, 2015
                               ___________

Introduced  by M. of A. TITUS -- read once and referred to the Committee
  on Labor

AN ACT to amend the labor law, in relation to authorizing and regulating
  the use of payroll cards

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 190 of the labor law is amended by adding eight new
subdivisions 10, 11, 12, 13, 14, 15, 16 and 17 to read as follows:
  10.  "ACCOUNT"  MEANS  A  DEMAND DEPOSIT (CHECKING), SAVINGS, OR OTHER
CONSUMER ASSET ACCOUNT (OTHER THAN AN OCCASIONAL  OR  INCIDENTAL  CREDIT
BALANCE  IN  A  CREDIT  PLAN) HELD DIRECTLY OR INDIRECTLY BY A FINANCIAL
INSTITUTION AND ESTABLISHED PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD
PURPOSES.
  11. "ELECTRONIC FUND TRANSFER" MEANS ANY TRANSFER  OF  FUNDS  THAT  IS
INITIATED  THROUGH  AN  ELECTRONIC  TERMINAL,  TELEPHONE,  COMPUTER,  OR
MAGNETIC TAPE FOR THE PURPOSE OF ORDERING, INSTRUCTING, OR AUTHORIZING A
FINANCIAL INSTITUTION TO DEBIT OR  CREDIT  AN  EMPLOYEE'S  PAYROLL  CARD
ACCOUNT. ELECTRONIC FUND TRANSFER INCLUDES, BUT IS NOT LIMITED TO:
  A. POINT-OF-SALE TRANSFERS;
  B. AUTOMATED TELLER MACHINE TRANSFERS;
  C. DIRECT DEPOSITS OR WITHDRAWALS OF FUNDS;
  D. TRANSFERS INITIATED BY TELEPHONE; AND
  E.  TRANSFERS  RESULTING  FROM DEBIT CARD TRANSACTIONS, WHETHER OR NOT
INITIATED THROUGH AN ELECTRONIC TERMINAL.
  12. "PAYROLL CARD ACCOUNT" MEANS AN ACCOUNT THAT IS DIRECTLY OR  INDI-
RECTLY  ESTABLISHED THROUGH OR BY AN EMPLOYER AND INTO WHICH AN EMPLOYER
DIRECTLY OR INDIRECTLY DEPOSITS AN EMPLOYEE'S WAGES THROUGH AN ELECTRON-
IC FUNDS TRANSFER.
  13. "PAYROLL CARD  ISSUER"  MEANS  ANY  BANK,  FINANCIAL  INSTITUTION,
THIRD-PARTY PAYROLL PROCESSOR, OR ANY OTHER PERSON OR ENTITY THAT ISSUES
A PAYROLL CARD TO AN EMPLOYEE ON BEHALF OF AN EMPLOYER.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08769-02-5
              

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  14.  "PAYROLL  CARD" MEANS A CARD ISSUED TO AN EMPLOYEE BY AN EMPLOYER
OR OTHER PAYROLL CARD ISSUER AS A  MEANS  OF  ACCESSING  THE  EMPLOYEE'S
PAYROLL CARD ACCOUNT.
  15.  "CARDHOLDER EMPLOYEE" MEANS ANY EMPLOYEE THAT HAS PROVIDED HIS OR
HER EMPLOYER WITH ADVANCE WRITTEN CONSENT AND HAS ELECTED TO RECEIVE HIS
OR HER WAGES THROUGH A PAYROLL CARD ACCOUNT.
  16. "PAYMENT OF WAGES THROUGH A PAYROLL CARD ACCOUNT" MEANS PAYMENT OF
WAGES BY MEANS OF ELECTRONIC  FUND  TRANSFER,  OR  DEPOSIT  OR  TRANSFER
THROUGH OTHER MEANS, TO A PAYROLL CARD ACCOUNT.
  17.  "RECEIPT  OF  WAGES  THROUGH  A  PAYROLL  CARD ACCOUNT" MEANS THE
RECEIPT OF WAGES BY MEANS OF ELECTRONIC FUND  TRANSFER,  OR  DEPOSIT  OR
TRANSFER THROUGH OTHER MEANS, TO A PAYROLL CARD ACCOUNT.
  S  2.  Section  192 of the labor law, as amended by chapter 301 of the
laws of 1974, subdivision 1 as added by chapter 475 of the laws of  1981
and  as  renumbered by chapter 170 of the laws of 1994 and subdivision 2
as amended by chapter 304 of the laws of 2007, is  amended  to  read  as
follows:
  S 192. [Cash payment] PAYMENT of wages. 1. [No] AN EMPLOYER MAY PAY OR
TRANSFER  THE  NET  WAGE OR SALARY OF AN EMPLOYEE IN THE FORM OF CASH, A
PAPER CHECK, A DIRECT DEPOSIT TO A BANK OR OTHER FINANCIAL  INSTITUTION,
OR  A  DIRECT  DEPOSIT  TO A PAYROLL CARD ACCOUNT, PROVIDED, HOWEVER, NO
employer shall, without the advance written OR ELECTRONIC consent of any
employee [directly], pay or [deposit] TRANSFER the net wage or salary of
such employee in THE FORM OF A DIRECT DEPOSIT TO a bank or other  finan-
cial institution OR TO A PAYROLL CARD ACCOUNT.
  2.  AN EMPLOYER SHALL NOT INITIATE PAYMENT OF WAGES TO THE EMPLOYEE BY
ELECTRONIC FUNDS TRANSFER TO A PAYROLL CARD ACCOUNT UNLESS THE  EMPLOYER
ALSO  OFFERS  THE  EMPLOYEE THE OPTIONS OF PAYMENT BY PAPER CHECK AND BY
DIRECT DEPOSIT TO A DEPOSITORY ACCOUNT DESIGNATED BY THE  EMPLOYEE.  FOR
PURPOSES  OF THIS ARTICLE, A PAPER CHECK SHALL NOT INCLUDE A CONVENIENCE
CHECK OR ANY OTHER CHECK DRAWN UPON AN EMPLOYEE'S PAYROLL  CARD  ACCOUNT
AND  WHICH  MUST BE COMPLETED BY THE EMPLOYEE, UNLESS THE EMPLOYER TAKES
ALL STEPS TO RENDER THE CONVENIENCE CHECK ABLE TO BE IMMEDIATELY  DEPOS-
ITED  OR  CASHED,  INCLUDING  FILLING  OUT THE CHECK ITSELF PROPERLY AND
ACCURATELY WITH THE CORRECT NET WAGE DOLLAR AMOUNT.
  3.  AT ANY TIME, AN EMPLOYEE  MAY,  IN  WRITING,  WITHDRAW  PREVIOUSLY
GRANTED  WRITTEN  CONSENT  TO  BE PAID HIS OR HER WAGES IN THE FORM OF A
DIRECT DEPOSIT TO A BANK OR OTHER FINANCIAL INSTITUTION OR TO A  PAYROLL
CARD  ACCOUNT. AN EMPLOYER SHALL, WITHIN TWO PAY PERIODS OF SUCH EMPLOY-
EE'S WRITTEN NOTIFICATION, CEASE PAYING THE EMPLOYEE'S WAGES IN THE FORM
OF A DIRECT DEPOSIT TO A BANK OR OTHER FINANCIAL  INSTITUTION  OR  TO  A
PAYROLL CARD ACCOUNT.
  4.  AN  EMPLOYER  SHALL  MAINTAIN  AND  PRESERVE,  FOR THE TIME PERIOD
PRESCRIBED FOR PAYROLL RECORDS UNDER SUBDIVISION  FOUR  OF  SECTION  ONE
HUNDRED NINETY-FIVE OF THIS ARTICLE, A COPY OF ANY WRITTEN AUTHORIZATION
OBTAINED UNDER THIS SECTION.
  5.  This section shall not apply to any person employed in a bona fide
executive, administrative, or professional capacity whose  earnings  are
in excess of nine hundred dollars a week[, nor to employees working on a
farm not connected with a factory].
  S  3.  The  labor  law  is amended by adding three new sections 192-a,
192-b and 192-c to read as follows:
  S 192-A. PAYMENT OF WAGES TO A PAYROLL CARD ACCOUNT. 1.  EVEN WHERE AN
EMPLOYER MEETS THE REQUIREMENTS OF SECTION  ONE  HUNDRED  NINETY-TWO  OF
THIS ARTICLE, AN EMPLOYER MUST, PRIOR TO OBTAINING AN EMPLOYEE'S WRITTEN
CONSENT  AS  REQUIRED BY SECTION ONE HUNDRED NINETY-TWO OF THIS ARTICLE,

A. 5968                             3

PROVIDE SUCH EMPLOYEE WITH WRITTEN NOTICE OF THE TERMS AND CONDITIONS OF
THE PAYROLL CARD PROGRAM IN  ENGLISH  AND  IN  THE  LANGUAGES  THAT  THE
EMPLOYER  PRIMARILY  USES  TO COMMUNICATE EMPLOYMENT RELATED POLICIES TO
ITS EMPLOYEES. SUCH NOTICE MUST INCLUDE, BUT IS NOT LIMITED TO:
  A.  A CLEAR, CONSPICUOUS AND ITEMIZED LIST, IN AT LEAST 12 POINT FONT,
OF ANY AND ALL FEES THAT MAY BE ASSESSED BY THE PAYROLL CARD ISSUER;
  B.  A CLEAR, CONSPICUOUS AND ITEMIZED LIST, IN AT LEAST 12 POINT FONT,
OF ANY AND ALL FEES THAT MAY BE ASSESSED BY THIRD PARTIES;
  C.  A  PLAIN LANGUAGE DESCRIPTION OF ALL OF THE METHODS AVAILABLE TO A
CARDHOLDER EMPLOYEE TO ACCESS HIS OR HER WAGES WITHOUT INCURRING A FEE;
  D. A PLAIN LANGUAGE DESCRIPTION OF ALL OF THE METHODS AVAILABLE  TO  A
CARDHOLDER  EMPLOYEE  TO  CHECK  THE  BALANCE OF HIS OR HER PAYROLL CARD
ACCOUNT WITHOUT INCURRING A FEE;
  E. A LIST OF FIVE LOCATIONS  REASONABLY  PROXIMATE  TO  THE  PLACE  OF
EMPLOYMENT WHERE A CARDHOLDER EMPLOYEE MAY ACCESS HIS OR HER WAGES WITH-
OUT INCURRING A FEE;
  F.  TIME  LIMITATIONS TO DISPUTE A CHARGE OR EXPENDITURE TO AN EMPLOY-
EE'S PAYROLL CARD ACCOUNT; AND
  G.  A PLAIN LANGUAGE DESCRIPTION OF THE METHODS AVAILABLE TO  A  CARD-
HOLDER  EMPLOYEE TO CLOSE HIS OR HER PAYROLL CARD ACCOUNT AND OBTAIN ALL
FUNDS AT NO CHARGE.
  2. AN EMPLOYER SHALL PROVIDE A CARDHOLDER EMPLOYEE WITH THIRTY DAYS OF
WRITTEN NOTICE PRIOR TO ANY CHANGES IN THE TERMS AND CONDITIONS, INCLUD-
ING ANY CHANGES IN FEES, TO HIS OR HER PAYROLL CARD ACCOUNT. SUCH NOTICE
SHALL BE IN ADDITION TO ANY OTHER NOTICE REQUIREMENT IN THIS ARTICLE AND
SHALL INCLUDE ALL  INFORMATION  PROVIDED  IN  SUBDIVISION  ONE  OF  THIS
SECTION.
  3.  AN  EMPLOYER  SHALL  NOT  PAY ITS EMPLOYEES THROUGH A PAYROLL CARD
ACCOUNT UNLESS CARDHOLDER EMPLOYEES ARE PROVIDED WITH:
  A. AT LEAST ONE NETWORK OF ATMS, LOCATED IN  REASONABLE  PROXIMITY  TO
THE  CARDHOLDER  EMPLOYEE'S  PLACE  OF EMPLOYMENT OR PLACE OF RESIDENCE.
SUCH A NETWORK OF ATMS MUST PERMIT:
  (I) UNLIMITED CASH WITHDRAWALS AT NO COST TO THE CARDHOLDER  EMPLOYEE;
AND
  (II)  UNLIMITED BALANCE INQUIRIES AT NO COST TO THE CARDHOLDER EMPLOY-
EE.
  B. AT LEAST ONE REASONABLY  CONVENIENT  METHOD,  IN  ADDITION  TO  THE
REQUIREMENT OF PARAGRAPH A OF THIS SUBDIVISION, FOR A CARDHOLDER EMPLOY-
EE  TO  WITHDRAW  HIS  OR HER ENTIRE NET PAY, AS STATED ON AN EMPLOYEE'S
EARNING STATEMENT, FOR EACH PAY PERIOD WITHOUT  INCURRING  A  FEE.  SUCH
METHOD  SHALL  BE AVAILABLE TO THE CARDHOLDER EMPLOYEE ON AND AFTER SUCH
EMPLOYEE'S REGULAR PAYDAY AND LOCATED IN  REASONABLE  PROXIMITY  TO  THE
CARDHOLDER EMPLOYEE'S PLACE OF EMPLOYMENT OR PLACE OF RESIDENCE;
  C.  A  HARD  COPY PERIODIC STATEMENT, FREE OF CHARGE, FOR EACH MONTHLY
CYCLE IN WHICH ELECTRONIC FUNDS TRANSFER HAS OCCURRED;  AND  A  PERIODIC
STATEMENT  FREE  OF  CHARGE,  AT  LEAST  QUARTERLY  IF  NO  TRANSFER HAS
OCCURRED. IN THE ALTERNATIVE, AN EMPLOYER MAY COMPLY WITH  THIS  SECTION
IF  THE PAYROLL CARD ISSUED MAKES ACCOUNT INFORMATION AVAILABLE TO CARD-
HOLDER EMPLOYEES FREE OF CHARGE THROUGH THE FOLLOWING MEANS:
  (I) A READILY AVAILABLE TELEPHONE LINE OPERATED TWENTY-FOUR HOURS  PER
DAY, SEVEN DAYS PER WEEK. SUCH LINE MAY BE AUTOMATED, PROVIDED, HOWEVER;
SUCH  AUTOMATION  SHALL  BE  AVAILABLE  IN THE LANGUAGE OR LANGUAGES THE
EMPLOYER NORMALLY COMMUNICATES HIS OR HER EMPLOYMENT-RELATED POLICIES TO
HIS OR HER EMPLOYEES;
  (II) AN ELECTRONIC HISTORY OF  A  CARDHOLDER'S  PAYROLL  CARD  ACCOUNT
TRANSACTIONS,  SUCH AS THROUGH AN INTERNET WEBSITE, THAT COVERS AT LEAST

A. 5968                             4

TWENTY-FOUR MONTHS PRECEDING THE DATE OF A CARDHOLDER'S ACCESS TO HIS OR
HER PAYROLL CARD ACCOUNT ELECTRONIC HISTORY; AND
  (III)  A  NON-ELECTRONIC, WRITTEN HISTORY OF A CARDHOLDER PAYROLL CARD
ACCOUNT TRANSACTIONS THAT IS PROVIDED PROMPTLY IN RESPONSE TO AN ORAL OR
WRITTEN REQUEST AND THAT COVERS AT LEAST SIXTY DAYS PRECEDING  THE  DATE
THAT A PAYROLL CARD ISSUER RECEIVES THE CARDHOLDER EMPLOYEE'S REQUEST;
  D. FREE CUSTOMER SERVICE, VIA A LIVE AGENT;
  E.  ONE  FREE  REPLACEMENT  PAYROLL  CARD PER YEAR UPON REQUEST OF THE
CARDHOLDER EMPLOYEE, PROVIDED, HOWEVER; A FEE MAY  BE  CHARGED  FOR  THE
COST  OF AN EXPEDITED DELIVERY OF A REPLACEMENT PAYROLL CARD, IF A CARD-
HOLDER EMPLOYEE REQUESTS SUCH DELIVERY.
  4.  AN EMPLOYER MAY PAY WAGES THROUGH A PAYROLL CARD ACCOUNT  ONLY  IF
THE PAYROLL CARD ACCOUNT IS:
  A.  FULLY  INSURED  BY  THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
NATIONAL CREDIT UNION ADMINISTRATION, OR ANY OTHER INSURER RECOGNIZED BY
THE DEPARTMENT OF FINANCIAL SERVICES, ON A PASS  THROUGH  BASIS  TO  THE
EMPLOYEE;
  B. HELD AT A DEPOSITORY INSTITUTION OR OTHER ENTITY WHICH HAS IN PLACE
A  WRITTEN IDENTITY THEFT PROGRAM TO DETECT, PREVENT, AND MITIGATE IDEN-
TITY THEFT IN CONNECTION WITH PAYROLL CARD ACCOUNTS, AS REQUIRED  BY  12
C.F.R. S 41.90; AND
  C.  IN  COMPLIANCE WITH THE REQUIREMENTS OF FEDERAL RESERVE REGULATION
E, 12 C.F.R. PARTS 205 AND 1005, TO THE EXTENT REQUIRED FOR PAYROLL CARD
ACCOUNTS AS SET FORTH IN 12 C.F.R. SS 205.18 AND 1005.18.
  5. AN EMPLOYER MAY NOT USE A PAYROLL CARD PROGRAM IN WHICH THE PAYROLL
CARD OR PAYROLL CARD ACCOUNT IS LINKED TO ANY FORM OF CREDIT  INCLUDING,
BUT  NOT  LIMITED  TO,  A  LOAN  AGAINST FUTURE PAY OR A CASH ADVANCE ON
FUTURE PAY.
  6. AN EMPLOYER MAY USE A PAYROLL CARD  PROGRAM  THAT  ALLOWS  FOR  THE
PROVISION  OF A SECOND, ADDITIONAL PAYROLL CARD TO A CARDHOLDER EMPLOYEE
UPON THE CARDHOLDER EMPLOYEE'S WRITTEN REQUEST. A SINGLE, ONE-TIME  FEE,
NOT  TO EXCEED FIVE DOLLARS, MAY BE CHARGED FOR ISSUANCE AND MAINTENANCE
OF A SECONDARY CARD.
  7. UPON TERMINATION OF A CARDHOLDER  EMPLOYEE'S  EMPLOYMENT,  OR  UPON
RECEIVING  NOTICE  OF  THE CARDHOLDER EMPLOYEE'S SEPARATION FROM EMPLOY-
MENT, THE EMPLOYER SHALL PROVIDE THE  EMPLOYEE  WITH  A  WRITTEN  NOTICE
ADVISING  THE  EMPLOYEE  THAT  HE  OR SHE MAY, AT NO COST, TERMINATE THE
PAYROLL CARD AND RECEIVE THE FULL BALANCE PAYABLE BY CHECK  WITHIN  FIVE
BUSINESS  DAYS.  THE  EMPLOYER SHALL DISCLOSE, IN THE MANNER PROVIDED BY
THIS SECTION, THE TERMS AND CONDITIONS, INCLUDING ANY AND ALL  FEES  AND
COSTS, RELATED TO MAINTAINING A PAYROLL CARD ACCOUNT THE UPON THE TERMI-
NATION OF THE EMPLOYMENT RELATIONSHIP.
  S 192-B. CONFIDENTIALITY OF EMPLOYEE INFORMATION. 1. AN EMPLOYER SHALL
NOT DISCLOSE AN EMPLOYEE'S PERSONAL IDENTIFYING INFORMATION TO A PAYROLL
CARD  ISSUER  UNLESS  SUCH EMPLOYER HAS RECEIVED ADVANCE WRITTEN CONSENT
FROM SUCH EMPLOYEE.   FOR THE PURPOSES OF  THIS  SUBDIVISION,  "PERSONAL
IDENTIFYING INFORMATION" SHALL INCLUDE THE EMPLOYEE'S NAME, SOCIAL SECU-
RITY  NUMBER,  HOME  ADDRESS, TELEPHONE NUMBER (HOME, MOBILE, OR OTHER),
PERSONAL ELECTRONIC MAIL ADDRESS, INTERNET IDENTIFICATION NAME OR  PASS-
WORD,  EMPLOYEE'S  OR  PARENT'S  SURNAME  PRIOR TO MARRIAGE, OR DRIVER'S
LICENSE NUMBER.
  2. NO EMPLOYER SHALL RECEIVE, ACCEPT, MAINTAIN, OR POSSESS ANY  INFOR-
MATION  OBTAINED  BY  THE  PAYROLL CARD ISSUER REGARDING ANY TRANSACTION
MADE BY AN EMPLOYEE CARDHOLDER INCLUDING, BUT NOT LIMITED TO:
  A. SERVICES OR GOODS PURCHASED;

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  B. THE NAME OR TYPE OF THE BUSINESS IN WHICH  A  SERVICE  OR  GOOD  IS
PURCHASED;
  C.  TIME,  DATE  OR  LOCATION OF ANY AND ALL PURCHASES, WITHDRAWALS OR
BALANCE INQUIRIES; AND
  D. FEES OR PENALTIES ASSESSED BY THE PAYROLL CARD  ISSUER.    HOWEVER,
THIS  INFORMATION  MAY  BE  PROVIDED IN THE AGGREGATE OR SUMMARIZED FORM
WITHOUT IDENTIFYING INDIVIDUAL EMPLOYEES.
  3. EACH CARDHOLDER EMPLOYEE SHALL BE PROVIDED WITH A COPY OF  ANY  AND
ALL  "CONSUMER  PRIVACY" POLICIES AND/OR NOTICES REQUIRED BY LAW.  CARD-
HOLDER EMPLOYEES MAY NOT BE  AUTOMATICALLY  SENT  ANY  DIRECT  MARKETING
MATERIALS  OR  ENROLLED  IN ANY MARKETING PROGRAMS, ALTHOUGH THEY MAY BE
GIVEN THE OPTION TO "OPT IN" TO RECEIVING DIRECT MARKETING MATERIALS.
  4. A PAYROLL CARD ISSUER SHALL DISCLOSE ANY BREACH OF SECURITY TO  ALL
AFFECTED  CARDHOLDER EMPLOYEES AND THE EMPLOYER OF SUCH EMPLOYEES WITHIN
TWENTY-FOUR HOURS OF SUCH BREACH, OR AS SOON AS REASONABLY PRACTICABLE.
  S 192-C. PROHIBITED ACTS. NO EMPLOYER SHALL:
  1. INTIMIDATE, THREATEN, COERCE, OR  OTHERWISE  PRESSURE  AN  EMPLOYEE
INTO CONSENTING TO BE PAID WAGES THROUGH A PAYROLL CARD ACCOUNT;
  2.  OBTAIN  AN  EMPLOYEE'S  CONSENT  TO BE PAID THROUGH A PAYROLL CARD
ACCOUNT THROUGH MEANS THAT ARE UNFAIR, DECEPTIVE, OR ABUSIVE;
  3. REQUIRE AS A CONDITION OF ANY EMPLOYEE'S HIRE OR CONTINUED  EMPLOY-
MENT THAT SUCH EMPLOYEE BE PAID WAGES THROUGH A PAYROLL CARD ACCOUNT;
  4.  RETALIATE  OR  TAKE ADVERSE EMPLOYMENT ACTION AGAINST ANY EMPLOYEE
WHO DOES NOT CHOOSE TO BE PAID THROUGH A PAYROLL CARD ACCOUNT;
  5. RETALIATE OR TAKE ADVERSE EMPLOYMENT ACTION AGAINST ANY  CARDHOLDER
EMPLOYEE BASED UPON ANY CARDHOLDER EMPLOYEE TRANSACTIONS MADE THROUGH OR
ANY INFORMATION GENERATED BY THE CARDHOLDER EMPLOYEE'S POSSESSION OR USE
OF A PAYROLL CARD;
  6. PAY WAGES TO AN EMPLOYEE THROUGH A PAYROLL CARD ACCOUNT THAT CHARG-
ES A FEE TO A CARDHOLDER EMPLOYEE FOR ANY OF THE FOLLOWING:
  A.  INITIATION, PARTICIPATION, LOADING, OR OTHER FEES TO RECEIVE WAGES
PAYABLE IN AN ELECTRONIC FUND TRANSFER TO A PAYROLL CARD ACCOUNT;
  B. INACTIVITY, DORMANCY, OR OTHER  FEE  RESULTING  FROM  A  CARDHOLDER
EMPLOYEE'S NON-USE OF HIS OR HER PAYROLL CARD ACCOUNT;
  C. ACCOUNT MAINTENANCE OR MONTHLY MAINTENANCE;
  D. ANY POINT OF SALE DEBIT OR SIGNATURE TRANSACTION;
  E. THE FIRST TWO DECLINED SALES OR ATM TRANSACTIONS OF EACH MONTH;
  F. CLOSING AN ACCOUNT;
  G.  THE  ISSUANCE OF A REPLACEMENT CARD IN ACCORDANCE WITH PARAGRAPH E
OF SUBDIVISION THREE OF SECTION ONE HUNDRED NINETY-TWO-A OF  THIS  ARTI-
CLE; OR
  H.  UNDISCLOSED  FEES  IMPOSED  BY THE EMPLOYER OR PAYROLL CARD ISSUER
THAT WERE NOT PREVIOUSLY DISCLOSED TO THE CARDHOLDER EMPLOYEE;
  7. RECEIVE ANY CONSIDERATION FROM A PAYROLL CARD ISSUER INCLUDING, BUT
NOT LIMITED TO COMPENSATION, BONUS, OR REWARD BASED UPON:
  A. A PORTION OF ANY PAYROLL CARD-RELATED FEES PAID BY SUCH  EMPLOYER'S
CARDHOLDER EMPLOYEES, OR
  B.  THE  NUMBER OF EMPLOYEES WHO ARE PAID WAGES THROUGH A PAYROLL CARD
ACCOUNT.  NOTHING IN THIS SECTION SHALL PRECLUDE EMPLOYERS FROM  RECEIV-
ING A BULK RATE OR VOLUME DISCOUNT BASED ON THE NUMBER OF EMPLOYEES THAT
CHOOSE TO RECEIVE WAGES THROUGH A PAYROLL CARD ACCOUNT;
  8. PAY WAGES TO AN EMPLOYEE THROUGH A PAYROLL CARD ACCOUNT THAT CHARG-
ES ANY CARDHOLDER EMPLOYEE AN OVERDRAFT FEE UNDER ANY CIRCUMSTANCES.
  S 4.  Subdivisions 1-a and 3 of section 198 of the labor law, subdivi-
sion 1-a as amended by chapter 564 of the laws of 2010 and subdivision 3

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as  amended  by  chapter  2  of  the laws of 2015, are amended and a new
subdivision 5 is added to read as follows:
  1-a.  On behalf of any employee paid less than the wage to which he or
she is entitled under the provisions of this article,  OR  ALLEGING  ANY
OTHER  VIOLATION  OF  THIS ARTICLE, the commissioner may bring any legal
action necessary, including administrative action, to collect such claim
and as part of such legal action, in addition to any other remedies  and
penalties otherwise available under this article, the commissioner shall
assess  against  the  employer the full amount of any such underpayment,
and an additional amount as  liquidated  damages,  unless  the  employer
proves  a  good faith basis for believing that its underpayment of wages
was in compliance with the law. Liquidated damages shall  be  calculated
by  the  commissioner  as  no more than one hundred percent of the total
amount of wages found to be due. In any action instituted in the  courts
[upon  a  wage claim] by an employee or the commissioner FOR A VIOLATION
OF THIS ARTICLE in which the employee prevails, the  court  shall  allow
such  employee to recover the full amount of any underpayment, ANY OTHER
APPROPRIATE RELIEF, INCLUDING INJUNCTIVE RELIEF, all  reasonable  attor-
ney's  fees,  prejudgment  interest as required under the civil practice
law and rules, and, unless the employer proves a  good  faith  basis  to
believe  that  its underpayment of wages was in compliance with the law,
an additional amount as liquidated damages equal to one hundred  percent
of the total amount of the wages found to be due.
  3.  Notwithstanding  any  other provision of law, an action to recover
upon a liability imposed by this article must be  commenced  within  six
years.  The  statute  of  limitations  shall  be tolled from the date an
employee files a complaint with the  commissioner  or  the  commissioner
commences  an  investigation,  whichever  is  earlier, until an order to
comply issued by the commissioner becomes final, or  where  the  commis-
sioner does not issue an order, until the date on which the commissioner
notifies  the complainant that the investigation has concluded. Investi-
gation by the commissioner shall not be a  prerequisite  to  nor  a  bar
against a person bringing a civil action under this section. All employ-
ees  shall  have  the right to recover full wages, DAMAGES, benefits and
wage supplements and liquidated damages accrued  during  the  six  years
previous to the commencing of such action, whether such action is insti-
tuted by the employee or by the commissioner.
  5.  A  COURT  OF COMPETENT JURISDICTION MAY ENJOIN AN EMPLOYER WHO HAS
COMMITTED REPEAT OR WILLFUL VIOLATIONS OF ANY PROVISION OF  SECTION  ONE
HUNDRED   NINETY-TWO-A,   ONE   HUNDRED   NINETY-TWO-B  OR  ONE  HUNDRED
NINETY-TWO-C OF THIS ARTICLE FROM PAYING  EMPLOYEES'  WAGES  BY  PAYROLL
CARD  FOR  A  PERIOD  OF  TWO YEARS. THE COMMISSIONER MAY ISSUE AN ORDER
PROHIBITING AN EMPLOYER WHO HAS COMMITTED REPEAT OR  WILLFUL  VIOLATIONS
OF  ANY  PROVISIONS  OF  THIS  SECTION  FROM  PAYING EMPLOYEES' WAGES BY
PAYROLL CARD FOR A PERIOD OF TWO YEARS. THE TWO YEAR PERIOD OF  PROHIBI-
TION  SHALL  COMMENCE  SIXTY  DAYS  FROM  THE DATE OF THE COMMISSIONER'S
ORDER, OR SIXTY DAYS AFTER FINAL DISPOSITION OF ANY APPEAL, WHICHEVER IS
LATER.
  S 5. Severability clause. The provisions of this act are severable. If
any phrase, clause, sentence, or provision of this act is declared to be
invalid or preempted in whole or in part by any  federal  law  or  regu-
lation, the validity of the remainder of this act shall not be affected.
  S 6. This act shall take effect on the one hundred eightieth day after
it shall have become a law.