BILL NUMBER: S60
SPONSOR: GALLIVAN
 
TITLE OF BILL:
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
 
PURPOSE:
The bill would allow New York employers to provide for the payment of
wages on payroll cards.
 
SUMMARY OF PROVISIONS:
Section 1 amends the heading of section 192 of the Labor Law.
Section 2 amends subdivision 1 of Section 192 of the Labor Law to speci-
fy 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 3 amends the Labor Law by adding a new section 192-a which spec-
ifies the payment of wages using payroll cards
Section 4 establishes the effective date.
 
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 tradi-
tionally "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:
2023-24: S.37 Referred to Labor
2021-22: 5.1697 Referred to Labor
2019-20: S.832 Referred to Labor
2017-18: S.5208A/A.6771A Referred to Labor
2015-16: S.2590A/A.3109A Advanced to 3rd reading in Senate
2013-14: S.4392A/A.6419B Labor committee
2011-12: S.6288A/A.6894A Labor committee
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
Ninetieth day after it shall have become law.

Statutes affected:
S60: 192 labor law