119 0 obj <> endobj New York State law currently prohibits employers from paying employees via direct deposit without advance written consent from the employee. Employees must still have access to … %%EOF Colorado employers cannot require an employee to receive payment of … Given a labor and can an require direct new york law relating to receive an employee information and the final regulations are here to the Employees must be informed of the terms and conditions for terminating any direct deposit arrangement and must be provided with a written statement of each deposit. Throughout the country, payroll debit cards are becoming an increasingly popular way for employers to pay their employees. The Final Regulations, which closely track earlier proposed regulations, will become … And, if it does, are there any restrictions on the practice? endstream endobj 147 0 obj <>/Filter/FlateDecode/Index[8 111]/Length 27/Size 119/Type/XRef/W[1 1 1]>>stream 0000001480 00000 n 8-4-102. Employers are still required, however, to obtain prior written authorization from employees who wish to be paid via direct deposit or payroll debit card. startxref xref <]/Prev 121144/XRefStm 1155>> Can an employer require new hires to have direct deposit butnot established employees? Under no circumstances may an employer condition employment upon an employee’s consent to receive payment of wages by either direct deposit or debit card. While Ms. Lester's former employer says it was justified in taking the money, others say the case shows how direct deposit can be abused. 0000003394 00000 n The Electronic Fund Transfer Act (EFTA) protects employers and employees who use features like direct deposit. 0000012262 00000 n 0000001155 00000 n In September of 2016, the New York Department of Labor adopted final rules which regulate wage payment methods in the state. 0000004533 00000 n Is this permitted? 0000004788 00000 n All employers New H ampshire Employers may pay employees by electronic fund transfer, direct deposit, or a payroll card, provided there is no charge to the employee. NY Labor Law, Art. Cash Payment of Wages. In fact, receiving direct deposit can be used as a prerequisite for hiring in many of states provided you comply with the following requirements: You don’t require employees to use a specific bank. For example, under New York Labor Law, employers are required to get advance, written consent from an employee before exercising this payment option and directly depositing the employee's pay check. The New York State Industrial Board of Appeals (the “IBA” or the “Board”) invalidated regulations scheduled to take effect on March 7, 2017, that would have enhanced the notice and authorization requirements for employers using direct deposit or debit cards to pay wages to their employees. Ever employee that accepts payment by direct deposit will therefore have to Direct deposit. 6, 192 Can an employer force you to get direct deposit in New York State? However, if an employee who is hired after January 1, 2010, fails to designate an account for the receipt of direct deposits, the employer may pay wages or salaries to the employee by credit to a prepaid debit card or card account. In addition: Your pay is available as cash on pay day. 0000001834 00000 n 148 0 obj <>stream On the federal level, the Fair Labor Standards Act (FLSA) — which is the governing law for many payroll matters — doesn’t expressly address the issue. Q. ©1996-2020 Davis Wright Tremaine LLP. Colorado Stat. Employers in New York have the option of paying wages to employees by one of four methods: cash, check, direct deposit or debit card. A. The New York State Labor Law provides as follows: Section 192. However, employers must meet the federal requirements for direct deposit. Direct Deposit is the safer, faster, and smarter way to get paid. Such consent may not be the product of intimidation, coercion or fear of adverse action by the employer for refusing to accept this form of payment. 0000001988 00000 n 0000004236 00000 n Employers cannot require the direct deposit of paychecks. 0000005279 00000 n Direct deposit is an increasingly common method of paying employees, with numerous advantages for employees (fewer trips to the bank, no worry about losing a check) and employers (reduced cost and administrative hassle). On September 7, 2016, the New York State Department of Labor (“NYSDOL”) adopted final regulations (“Final Regulations”) limiting the methods by which New York employers may pay their employees and defining mandatory procedures for the use of direct deposit and payroll debit card payments. The New York State Department of Labor’s final regulations would have required employers to provide access to one or more automatic teller machines that offer withdrawals at no cost to the employee, and to ensure that payroll debit card issuers did not charge fees related to the use of payroll debit cards. 0000063673 00000 n Employers cannot require employees to receive their pay via direct deposit. 0000000016 00000 n Under federal law, employers can require employees to receive their wages via direct deposit. Direct Deposit An employer may pay wages by direct deposit, so long as the employee has consented to the deposit and the wages are deposited into a financial institution of the employee’s choosing. 0000003145 00000 n 0000009465 00000 n Rather than invalidate only those parts of the regulations which concerned payment of wages by debit card, the decision revoked the regulations in their entirety, including the enhanced disclosure obligations for employers who pay wages to their employees via direct deposit. However, an employer may not require employees to accept payment by either direct deposit or debit card; rather, it may use that method of payment only after making certain disclosures to its employees and obtaining the employees’ written authorization to receive payment by … State law doesn’t explicitly allow employers to require direct deposit, but at least one Pennsylvania court has implicitly endorsed the practice (Statler v. 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