Proposed New York State Department of Labor Regulations Deemed Invalid and Revoked

March 13, 2017

On February 16, 2017, the New York State Industrial Board of Appeals (“IBA”) (an independent review agency that assesses the reasonableness and validity of certain rules, regulations or ordered issued by the Department of Labor) revoked proposed regulations that had been adopted by the Commissioner of Labor.  The regulations, scheduled to take effect on March 7, 2017, would have prohibited banking institutions from charging certain fees to employees who attempted to access wages paid to them by their employer through payroll debit cards.  The IBA’s decision stems from a petition brought by Global Cash Card Inc., a payroll debit card vendor, who argued that the proposed regulations exceeded the Commissioner’s authority.

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