New York Publishes Final Rules On Wage Payment Methods

On September 7, 2016, the New York State Department of Labor published final regulations on the methods by which employees must be paid, including with respect to direct deposit of wages and payroll debit cards. The regulations become effective on March 7, 2017.

Direct Deposit

New York first legislated the method of payment of wages in the late 1800s, when it required that wages be paid in cash and (for manual workers) weekly. For decades, New York has allowed employers to pay wages by direct deposit, but only with employee consent. (Labor Law 192(1) currently states that "[n]o 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.") Consent is not required from individuals employed in a bona fide executive, administrative, or professional capacity whose earnings are in excess of $900 a week.