12 CRR-NY 192-2.3NY-CRR
12 CRR-NY 192-2.3
12 CRR-NY 192-2.3
192-2.3 Payment of wages by payroll debit card.
(a) When paying wages by payroll debit card, an employer shall ensure that:
(1) it has consent from the employee;
(2) it provides the information referenced in section 192-1.3(a) and receives consent at least seven business days prior to taking action to issue the payment of wages by payroll debit card, during such seven business days the employee’s consent shall not take effect.
(b) An employer shall not deliver payment of wages by payroll debit card unless each of the following is provided:
(1) local access to one or more automated teller machines that offers withdrawals at no cost to the employee;
(2) at least one method to withdraw up to the total amount of wages for each pay period or balance remaining on the payroll debit card without the employee incurring a fee;
(c) an employer or agent shall not charge, directly or indirectly, an employee a fee for any of the items listed in this subdivision. Inclusion in this subdivision does not impose any separate or independent obligation to provide services, nor does it relieve an employer or agent from compliance with this Part or any Federal or State law or regulations:
(1) application, initiation, loading, participation or other action necessary to receive wages or to hold the payroll debit card;
(2) point of sale transactions;
(3) overdraft, shortage, or low balance status;
(4) account inactivity;
(6) telephone or online customer service;
(7) accessing balance or other account information online, by interactive voice response through any other automated system offered in conjunction with the payroll debit card, or at any ATM in network made available to the employee;
(8) providing the employee with written statements, transaction histories or the issuer’s policies;
(9) replacing the payroll debit card at reasonable intervals;
(10) closing an account or issuing payment of the remaining balance by check or other means;
(11) declined transactions at an automated teller machine that does not provide free balance inquiries; or
(12) any fee not explicitly identified by type and by dollar amount in the contract between the employer and the issuer or in the terms and conditions of the payroll debit card provided to the employee.
(d) An employer or its agent shall not deliver payment of wages by payroll debit card account that is linked to any form of credit, including a loan against future pay or a cash advance on future pay. Nothing in this subdivision shall prohibit an issuer from covering an occasional inadvertent overdraft transaction if there is no charge to the employee.
(e) An employer shall not pass on any of its own costs associated with a payroll debit card account to an employee, nor may an employer receive any kickback or other financial remuneration from the issuer, card sponsor, or any third party for delivering wages by payroll debit card.
(f) An employer or its agent shall not deliver payment of wages by payroll debit card unless the agreement between the employer and issuer requires that the funds on a payroll debit card shall not expire. Notwithstanding this requirement, the agreement may provide that the account may be closed for inactivity provided that the issuer gives reasonable notice to the employee and that the remaining funds are refunded within seven days.
(g) At least 30 days before any change in the terms and conditions of a payroll debit card takes effect, an employer must provide written notice in plain language, in the employee’s primary language or in a language the employee understands, and in at least 12-point font of any change to the terms or conditions of the payroll debit card account including any changes in the itemized list of fees. If the issuer charges the employee any new or increased fee before 30 days after the date the employer has provided the employee with written notice of the change in accordance with the provisions of this subdivision, the employer must reimburse the employee for the amount of that fee.
(h) Where an employee is covered by a valid collective bargaining agreement that expressly provides the method or methods by which wages may be paid to employees, an employer must also have the approval of the union before paying by payroll card.
12 CRR-NY 192-2.3
Current through October 31, 2020
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