Bill Text: NY S04392 | 2013-2014 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Clarifies methods for the payment of wages and authorizes the payment of wages by use of payroll cards.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO LABOR [S04392 Detail]

Download: New_York-2013-S04392-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        4392--A
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                    March 26, 2013
                                      ___________
       Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
         printed to be  committed  to  the  Committee  on  Labor  --  committee
         discharged, bill amended, ordered reprinted as amended and recommitted
         to said committee
       AN ACT to amend the labor law, in relation to clarifying methods for the
         payment  of  wages  and  authorizing  the  payment  of wages by use of
         payroll cards
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The  section  heading of section 192 of the labor law, as
    2  amended by chapter 301 of the laws  of  1974,  is  amended  to  read  as
    3  follows:
    4    [Cash payment] PAYMENT of wages.
    5    S  2. Subdivision 1 of section 192 of the labor law, as added by chap-
    6  ter 475 of the laws of 1981 and as renumbered by chapter 170 of the laws
    7  of 1994, is amended to read as follows:
    8    1. [No employer shall without  the  advance  written  consent  of  any
    9  employee directly pay or deposit the net wage or salary of such employee
   10  in a bank or other financial institution.] WAGES SHALL BE PAID USING ONE
   11  OR MORE OF THE FOLLOWING METHODS:
   12    A. IN LAWFUL MONEY OF THE UNITED STATES;
   13    B.  BY  CHECK PAYABLE AT FACE VALUE UPON DEMAND IN LAWFUL MONEY OF THE
   14  UNITED STATES;
   15    C. BY ELECTRONIC AUTOMATED FUND TRANSFER IN LAWFUL MONEY OF THE UNITED
   16  STATES INTO AN ACCOUNT IN THE NAME OF THE EMPLOYEE AT A FINANCIAL INSTI-
   17  TUTION DESIGNATED BY THE EMPLOYEE; PROVIDED THAT THE EMPLOYEE  VOLUNTAR-
   18  ILY  GIVES  WRITTEN AUTHORIZATION IN ADVANCE TO RECEIVE HIS OR HER WAGES
   19  IN THIS MANNER; OR
   20    D. BY CREDIT TO A PAYROLL CARD IN ACCORDANCE WITH SECTION ONE  HUNDRED
   21  NINETY-TWO-A  OF  THIS  ARTICLE,  PROVIDED THAT THE EMPLOYEE VOLUNTARILY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00711-02-3
       S. 4392--A                          2
    1  GIVES WRITTEN OR ELECTRONIC AUTHORIZATION IN ADVANCE TO RECEIVE  HIS  OR
    2  HER WAGES IN THIS MANNER.
    3    S 3. The labor law is amended by adding a new section 192-a to read as
    4  follows:
    5    S  192-A.  PAYMENT  OF  WAGES  USING PAYROLL CARDS. 1. AS USED IN THIS
    6  SECTION:
    7    A. "PAYROLL CARD" MEANS A PREPAID CARD OR  OTHER  DEVICE  USED  BY  AN
    8  EMPLOYEE TO ACCESS WAGES FROM A PAYROLL CARD ACCOUNT;
    9    B.  "PAYROLL  CARD ACCOUNT" MEANS AN ACCOUNT THAT IS DIRECTLY OR INDI-
   10  RECTLY ESTABLISHED THROUGH AN EMPLOYER AND TO  WHICH  TRANSFERS  OF  THE
   11  EMPLOYEE'S WAGES, SALARY OR OTHER COMPENSATION ARE MADE; AND
   12    C. "PAYROLL CARD ISSUER" MEANS A FINANCIAL INSTITUTION OR OTHER ENTITY
   13  THAT ISSUES A PAYROLL CARD TO EMPLOYEES ON BEHALF OF THEIR EMPLOYER.
   14    2. IF AN EMPLOYER PAYS WAGES TO EMPLOYEES BY CREDIT TO A PAYROLL CARD:
   15    A.  EXCEPT  AS  PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, EMPLOYEES
   16  MUST BE ABLE TO MAKE AT  LEAST  ONE  WITHDRAWAL  OR  TRANSFER  FROM  THE
   17  PAYROLL CARD ACCOUNT IN EACH PAY PERIOD WITHOUT CHARGE FOR ANY AMOUNT UP
   18  TO  AND  INCLUDING  THE  FULL AMOUNT OF THE EMPLOYEE'S NET WAGES FOR THE
   19  PERIOD.
   20    B. IF WAGES ARE PAID MORE FREQUENTLY THAN WEEKLY,  EMPLOYEES  MUST  BE
   21  ABLE  TO  MAKE  AT  LEAST  ONE  WITHDRAWAL OR TRANSFER EACH WEEK WITHOUT
   22  CHARGE FOR ANY AMOUNT UP TO AND INCLUDING THE FULL AMOUNT OF THE EMPLOY-
   23  EE'S NET WAGES FOR THAT WEEK.
   24    C. IF AN EMPLOYER COMPLIES WITH THE WITHDRAWAL  REQUIREMENTS  OF  THIS
   25  SUBDIVISION  AND  THE  NOTICE  REQUIREMENT  IN  SUBDIVISION FIVE OF THIS
   26  SECTION, FEES ASSESSED BY THE PAYROLL CARD  ISSUER  IN  ACCORDANCE  WITH
   27  SUCH  NOTICE  SHALL  NOT BE DEEMED TO BE DEDUCTIONS FROM WAGES AND SHALL
   28  NOT BE DEEMED TO VIOLATE SECTION ONE HUNDRED NINETY-ONE OR  ONE  HUNDRED
   29  NINETY-THREE OF THIS ARTICLE.
   30    3.  EMPLOYERS  WHO USE PAYROLL CARDS TO DELIVER WAGES OR OTHER COMPEN-
   31  SATION TO THEIR EMPLOYEES MUST ALSO PROVIDE EMPLOYEES WITH THE OPTION OF
   32  RECEIVING THEIR WAGES OR OTHER COMPENSATION BY ELECTRONIC FUND  TRANSFER
   33  IN ACCORDANCE WITH SECTION ONE HUNDRED NINETY-ONE-C OF THIS ARTICLE.
   34    4.  EMPLOYEES  WHO  RECEIVE  WAGES BY CREDIT TO A PAYROLL CARD MUST BE
   35  PROVIDED WITH A MEANS OF CHECKING THEIR PAYROLL  CARD  ACCOUNT  BALANCES
   36  THROUGH  AN  AUTOMATED  TELEPHONE  SYSTEM  AND ONE ADDITIONAL ELECTRONIC
   37  MEANS, WITHOUT COST IRRESPECTIVE OF NUMBER OF INQUIRIES MADE.
   38    5. WHEN OFFERING AN EMPLOYEE THE OPTION OF RECEIVING WAGES  BY  CREDIT
   39  TO  A  PAYROLL  CARD ACCOUNT, AN EMPLOYER MUST PROVIDE THE EMPLOYEE WITH
   40  NOTICE OF THE FOLLOWING ITEMS IN PAPER OR PRINTABLE FORM. NOTICE MUST BE
   41  PROVIDED IN THE LANGUAGES THE  EMPLOYER  NORMALLY  USES  TO  COMMUNICATE
   42  EMPLOYMENT-RELATED POLICIES TO THEIR EMPLOYEES.
   43    A.  THE  TERMS  AND  CONDITIONS  RELATING  TO USE OF THE PAYROLL CARD,
   44  INCLUDING A LIST OF FEES THAT  MAY  BE  ASSESSED  BY  THE  PAYROLL  CARD
   45  ISSUER;
   46    B.  THE  METHODS  AVAILABLE  TO  EMPLOYEES FOR ACCESSING WAGES WITHOUT
   47  COSTS;
   48    C. THE METHODS AVAILABLE TO EMPLOYEES FOR CHECKING THE BALANCE IN  THE
   49  PAYROLL CARD ACCOUNT WITHOUT COST; AND
   50    D. A STATEMENT AS TO WHETHER THIRD PARTIES MAY ASSESS ADDITIONAL FEES.
   51    6.  WAGES  CREDITED  TO  A PAYROLL CARD ACCOUNT MUST BE INSURED BY THE
   52  FEDERAL DEPOSIT INSURANCE CORPORATION, THE NATIONAL CREDIT UNION  ADMIN-
   53  ISTRATION, OR ANOTHER ENTITY ON A PASS THROUGH BASIS TO THE EMPLOYEE.
   54    7.  NOTHING  IN THIS SECTION SHALL BE CONSTRUED TO PREEMPT OR OVERRIDE
   55  THE TERMS OF ANY COLLECTIVE BARGAINING AGREEMENT WITH RESPECT TO METHODS
       S. 4392--A                          3
    1  OF AN EMPLOYER'S PAYMENT OF WAGES, SALARY OR OTHER COMPENSATION  DUE  TO
    2  EMPLOYEES.
    3    S  4.  This  act shall take effect on the ninetieth day after it shall
    4  have become a law.