S T A T E   O F   N E W   Y O R K
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                                 2590--A
    Cal. No. 425

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 26, 2015
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor -- reported  favora-
  bly  from  said committee, ordered to first and second report, ordered
  to a third reading, amended and ordered reprinted, retaining its place
  in the order of third reading

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:

  Section 1. The section heading of section 192 of  the  labor  law,  as
amended  by  chapter  301  of  the  laws  of 1974, is amended to read as
follows:
  [Cash payment] PAYMENT of wages.
  S 2. Subdivision 1 of section 192 of the labor law, as added by  chap-
ter 475 of the laws of 1981 and as renumbered by chapter 170 of the laws
of 1994, is amended to read as follows:
  1.  [No  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.] WAGES SHALL BE PAID USING ONE
OR MORE OF THE FOLLOWING METHODS:
  A. IN LAWFUL MONEY OF THE UNITED STATES;
  B. BY CHECK PAYABLE AT FACE VALUE UPON DEMAND IN LAWFUL MONEY  OF  THE
UNITED STATES;
  C. BY ELECTRONIC AUTOMATED FUND TRANSFER IN LAWFUL MONEY OF THE UNITED
STATES INTO AN ACCOUNT IN THE NAME OF THE EMPLOYEE AT A FINANCIAL INSTI-
TUTION  DESIGNATED BY THE EMPLOYEE; PROVIDED THAT THE EMPLOYEE VOLUNTAR-
ILY GIVES WRITTEN OR ELECTRONIC AUTHORIZATION IN ADVANCE TO RECEIVE  HIS
OR HER WAGES IN THIS MANNER; OR
  D.  BY CREDIT TO A PAYROLL CARD ACCOUNT IN ACCORDANCE WITH SECTION ONE
HUNDRED NINETY-TWO-A OF THIS ARTICLE, PROVIDED THAT THE EMPLOYEE  VOLUN-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD04674-04-5

S. 2590--A                          2

TARILY  GIVES  WRITTEN OR ELECTRONIC AUTHORIZATION IN ADVANCE TO RECEIVE
HIS OR HER WAGES IN THIS MANNER.
  S 3. The labor law is amended by adding a new section 192-a to read as
follows:
  S  192-A.  PAYMENT  OF  WAGES  USING PAYROLL CARDS. 1. AS USED IN THIS
SECTION:
  A. "PAYROLL CARD" MEANS A PREPAID CARD USED BY AN EMPLOYEE  TO  ACCESS
WAGES FROM A PAYROLL CARD ACCOUNT;
  B.  "PAYROLL CARD ACCOUNT" MEANS A PREPAID ACCOUNT THAT IS DIRECTLY OR
INDIRECTLY ESTABLISHED THROUGH AN EMPLOYER AND TO WHICH TRANSFERS OF THE
EMPLOYEE'S WAGES, SALARY OR OTHER COMPENSATION ARE MADE; AND
  C. "PAYROLL CARD ISSUER" MEANS A FINANCIAL INSTITUTION OR OTHER ENTITY
THAT ISSUES A PAYROLL CARD TO EMPLOYEES ON BEHALF OF THEIR EMPLOYER.
  2. CONSENT TO RECEIVE WAGES BY CREDIT TO A PAYROLL CARD ACCOUNT  SHALL
NOT BE MADE A CONDITION OF HIRE OR A CONDITION OF CONTINUED EMPLOYMENT.
  3.  A  PAYROLL CARD PROGRAM OFFERED BY AN EMPLOYER SHALL BE ASSOCIATED
WITH A NETWORK OF AUTOMATED TELLER MACHINES THAT ASSURES THE AVAILABILI-
TY OF A SUBSTANTIAL NUMBER OF IN-NETWORK ATMS IN THE STATE.
  4. IF AN EMPLOYER PAYS WAGES TO EMPLOYEES BY CREDIT TO A PAYROLL CARD:
  A. EXCEPT AS PROVIDED IN PARAGRAPH B OF  THIS  SUBDIVISION,  EMPLOYEES
MUST  BE  ABLE  TO  MAKE  AT  LEAST  ONE WITHDRAWAL OR TRANSFER FROM THE
PAYROLL CARD ACCOUNT IN EACH PAY PERIOD WITHOUT CHARGE FOR ANY AMOUNT UP
TO AND INCLUDING THE FULL AMOUNT OF THE EMPLOYEE'S  NET  WAGES  FOR  THE
PERIOD  AND  ONE WITHDRAWAL AT AN IN-NETWORK ATM EACH PAY PERIOD WITHOUT
CHARGE.
  B. IF WAGES ARE PAID MORE FREQUENTLY THAN WEEKLY,  EMPLOYEES  MUST  BE
ABLE  TO  MAKE  AT  LEAST  ONE  WITHDRAWAL OR TRANSFER EACH WEEK WITHOUT
CHARGE FOR ANY AMOUNT UP TO AND INCLUDING THE FULL AMOUNT OF THE EMPLOY-
EE'S NET WAGES FOR THAT WEEK AND ONE WITHDRAWAL  AT  AN  IN-NETWORK  ATM
EACH PAY PERIOD WITHOUT CHARGE.
  5.  EMPLOYERS  WHO USE PAYROLL CARDS TO DELIVER WAGES OR OTHER COMPEN-
SATION TO THEIR EMPLOYEES MUST ALSO PROVIDE EMPLOYEES WITH THE OPTION OF
RECEIVING THEIR WAGES OR OTHER COMPENSATION BY CHECK AND ELECTRONIC FUND
TRANSFER IN ACCORDANCE WITH SECTION ONE  HUNDRED  NINETY-ONE-C  OF  THIS
ARTICLE.
  6.  AN EMPLOYEE WHO RECEIVES WAGES BY CREDIT TO A PAYROLL CARD MUST BE
PROVIDED WITH THE FOLLOWING:
  A. A MEANS OF CHECKING THE EMPLOYEE'S PAYROLL  CARD  ACCOUNT  BALANCES
THROUGH  AN  AUTOMATED  TELEPHONE  SYSTEM  AND ONE ADDITIONAL ELECTRONIC
MEANS, WITHOUT COST IRRESPECTIVE OF NUMBER OF INQUIRIES MADE.
  B. ACCESS TO AN  ELECTRONIC  TRANSACTION  HISTORY  THAT  INCLUDES  ALL
DEPOSITS,  WITHDRAWALS,  DEDUCTIONS, OR CHARGES BY ANY ENTITY FROM OR TO
THE EMPLOYEE'S PAYROLL CARD ACCOUNT AT NO  COST  TO  THE  EMPLOYEE.  THE
EMPLOYEE SHALL BE PROVIDED A WRITTEN TRANSACTION HISTORY AT NO COST UPON
REQUEST.
  C.  AT  THE  EMPLOYEE'S REQUEST, ONE REPLACEMENT CARD PER YEAR WITHOUT
COST, EXCEPT THAT A FEE MAY BE CHARGED FOR THE COST OF EXPEDITED  DELIV-
ERY  OF  A REPLACEMENT PAYROLL CARD IF THE EMPLOYEE REQUESTS SUCH DELIV-
ERY.
  7. WHEN OFFERING AN EMPLOYEE THE OPTION OF RECEIVING WAGES  BY  CREDIT
TO  A  PAYROLL  CARD ACCOUNT, AN EMPLOYER MUST PROVIDE THE EMPLOYEE WITH
NOTICE OF THE FOLLOWING ITEMS IN PAPER OR PRINTABLE FORM. NOTICE MUST BE
PROVIDED IN THE LANGUAGES THE  EMPLOYER  NORMALLY  USES  TO  COMMUNICATE
EMPLOYMENT-RELATED POLICIES TO THEIR EMPLOYEES.
  A. A LISTING OF ALL METHODS OF WAGE PAYMENT OFFERED BY THE EMPLOYER IN
ACCORDANCE WITH SECTION ONE HUNDRED NINETY-TWO OF THIS ARTICLE;

S. 2590--A                          3

  B.  THE  TERMS  AND  CONDITIONS  RELATING  TO USE OF THE PAYROLL CARD,
INCLUDING A LIST OF FEES THAT  MAY  BE  ASSESSED  BY  THE  PAYROLL  CARD
ISSUER;
  C.  THE  METHODS  AVAILABLE  TO  EMPLOYEES FOR ACCESSING WAGES WITHOUT
COSTS;
  D. THE METHODS AVAILABLE TO EMPLOYEES FOR CHECKING THE BALANCE IN  THE
PAYROLL CARD ACCOUNT WITHOUT COST; AND
  E. A STATEMENT THAT THIRD PARTIES MAY ASSESS TRANSACTION FEES IN ADDI-
TION TO THE FEES ASSESSED BY THE PAYROLL CARD ISSUER.
  8.  AN  EMPLOYER  MAY NOT USE A PAYROLL CARD PROGRAM THAT CHARGES FEES
FOR POINT OF SALE TRANSACTIONS; THE APPLICATION, INITIATION, LOADING  OF
WAGES  BY  THE  EMPLOYER; ACCOUNT MAINTENANCE OR MONTHLY MAINTENANCE; OR
MERE PARTICIPATION IN THE PAYROLL CARD PROGRAM. FEES FOR  ACCOUNT  INAC-
TIVITY MAY BE ASSESSED FOLLOWING NINE MONTHS OF INACTIVITY.
  9.  AN  EMPLOYEE  PAID  WAGES  BY CREDIT TO A PAYROLL CARD ACCOUNT MAY
REQUEST IN WRITING TO  BE  PAID  WAGES  BY  ANOTHER  METHOD  OF  PAYMENT
PROVIDED  BY THE EMPLOYER IN ACCORDANCE WITH SECTION ONE HUNDRED NINETY-
TWO OF THIS ARTICLE. FOLLOWING THE WRITTEN REQUEST, THE EMPLOYER  SHALL,
WITHIN  TWO  PAY PERIODS, BEGIN PAYMENT TO THE EMPLOYEE BY THE ALLOWABLE
METHOD REQUESTED BY THE EMPLOYEE.
  10. THE PAYROLL CARD OR PAYROLL CARD ACCOUNT MAY NOT BE LINKED TO  ANY
FORM  OF  CREDIT  INCLUDING, BUT NOT LIMITED TO, OVERDRAFT FEES OR OVER-
DRAFT SERVICE FEES, A LOAN AGAINST FUTURE PAY,  OR  A  CASH  ADVANCE  ON
FUTURE PAY OR WORK NOT YET PERFORMED.
  11.  A  PAYROLL  CARD PROGRAM OFFERED BY AN EMPLOYER SHALL PROVIDE THE
EMPLOYEE  WITH  NOTICES,  DISCLOSURES,  ERROR   RESOLUTION   PROCEDURES,
PROTECTIONS  FROM  UNAUTHORIZED  USE,  AND  LIMITATIONS  ON LIABILITY IN
ACCORDANCE WITH THE ELECTRONIC FUND TRANSFER ACT, 15 U.S.C.  S  1693  ET
SEQ, AND REGULATION E, 29 C.F.R. PART 1005, AS MAY BE AMENDED.
  12.  WAGES  CREDITED  TO A PAYROLL CARD ACCOUNT MUST BE INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE NATIONAL CREDIT UNION  ADMIN-
ISTRATION, OR ANOTHER ENTITY ON A PASS THROUGH BASIS TO THE EMPLOYEE.
  13. NO EMPLOYER SHALL RECEIVE ANY COMPENSATION, BONUS, REWARD OR OTHER
FINANCIAL  CONSIDERATION  FROM A PAYROLL CARD ISSUER BASED UPON: (A) THE
AMOUNT OR NUMBER OF PAYROLL CARD-RELATED FEES  PAID  BY  THE  EMPLOYER'S
EMPLOYEES;  OR  (B) THE NUMBER OF EMPLOYEES WHO ARE PAID WAGES THROUGH A
PAYROLL CARD ACCOUNT. NOTHING IN THIS SECTION SHALL  PRECLUDE  EMPLOYERS
FROM RECEIVING ACCOUNT MATERIALS OR A BULK RATE OR VOLUME DISCOUNT BASED
ON  THE  NUMBER  OF  EMPLOYEES THAT RECEIVE WAGES THROUGH A PAYROLL CARD
ACCOUNT.
  14.WHERE A COLLECTIVE BARGAINING AGREEMENT GOVERNS THE METHOD BY WHICH
AN EMPLOYER MUST PAY WAGES TO ITS EMPLOYEES,  AN  EMPLOYER  CANNOT  SEEK
CONSENT  TO RECEIVE WAGES ON A PAYROLL CARD FROM ANY EMPLOYEE COVERED BY
THAT COLLECTIVE BARGAINING AGREEMENT.
  S 4. This act shall take effect on the ninetieth day  after  it  shall
have become a law.