NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3109A
SPONSOR: Morelle (MS) TITLE OF BILL: An act to amend the labor law, in relation to clarify-
ing methods for the payment of wages and authorizing the payment of
wages by use of payroll cards
PURPOSE: The bill would allow New York employers to provide for the
payment of wages on payroll cards.
SUMMARY OF PROVISIONS:
Section I amends the heading of section 192 of the Labor Law.
Section II amends subdivision 1 of Section 192 of the Labor Law to spec-
ify the methods under which wages are paid wages shall be paid in the
following:
A. In lawful money of the United States
B. By check
C. By electronic automated fund transfer into an account in the same
name of the employee at a financial institution designed by the employ-
ee; provided the employee voluntarily gives written or electronic
authorization in advance
D. By credit to a payroll card in accordance with section 192-a of this
article
Section III amends the Labor Law by adding a new section 192-a which
specifies the payment of wages using payroll cards
Section IV - This act shall take effect on the ninetieth day after it
shall have become law
JUSTIFICATION: This legislation recognizes the benefits to employers
by providing the option to pay and to employees by providing the option
to receive wages on a payroll card. This option would give employees a
safe and reliable means to receive wages, by allowing them to access
their wages at ATMs, banks and merchant locations without having to
incur fees for check cashing or carry large amounts of cash. This bill
would also provide financial institutions with a manner to deliver
services to traditionally "unbanked" people. Payroll cards provide
employers with a less expensive way to deliver wages than paper checks,
which is particularly useful when an employee does not have access to
direct deposit services.
LEGISLATIVE HISTORY: A6694-A of 2012- referred to labor A6419-B of
2014- referred to labor
FISCAL IMPLICATIONS: None to the state.
EFFECTIVE DATE: Ninetieth day after it shall have become law.
