Thursday, August 18

New York Attorney General Voices Support for Payroll Card Regulation Bill

New York’s attorney general is continuing to publicly voice his support for a bill that would regulate the use of A.T.M.-style payroll cards throughout the state, which many employers use for paying employees.

According to the New York Times, Eric. T. Schneiderman, the state’s top prosecutor, is supporting the legislation because he believes payroll cards’ fees significantly cut into the paychecks of low-wage workers who have no other way of collecting their wages. The proposed legislature will require employers to offer alternative payment options and measures for consumer protection.

“Workers should not have to pay in order to get their pay,” Attorney General Schneiderman said, according to LongIsland.com. “While payroll cards can be helpful for employees without bank accounts, programs often impose fees that chip away at people’s hard-earned wages. The Payroll Card Act will ensure that workers have free and clear access to their wages, while providing clarity to employers about how to offer payroll cards in compliance with the law.”

The New York attorney general’s office has found that almost 40 companies were using payroll cards which profoudnly reduced workers’ take-home pay, the New York Times reported. A stunning 40% of those companies didn’t give employees the choice to receive a physical paycheck or direct deposit.

Attorney General Schneiderman’s bill will have to be approved by New York’s State Assembly and Senate before it can be approved by Gov. Andrew Cuomo, according to the New York Times.

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