N.Y. DOL Payroll Rule Expected this Week
It’s been more than a year since the New York Department of Labor first proposed payroll card regulations, but the agency is expected to follow up with a new payroll card rulemaking in the New York State Register this week. What’s uncertain is whether the regulations will be final or if the state will be following up its controversial proposal with a revised proposed rulemaking for which it will accept additional comments.
The state agency had until May 26, 2016—a year from the release date of its draft regulations—to issue its final rule regulating payroll cards in New York, but there is some leeway in the timing in terms of when a final rule is made public, sources suggest. In October of 2015, the agency revised its proposal, but industry still expressed concerns over requirements associated with fee prohibitions, waiting periods before employees could receive their pay on payroll cards and other provisions, which some believed would make programs unsustainable and cause providers to pull out of the state. The industry is hopeful that the agency took its concerns to heart and will propose an amended rule and accept further comments before finalizing regulations.