(Updated Feb. 24, 2017)
Payroll card providers that operate in New York can breathe a huge sigh of relief. Global Cash Card tells Paybefore that its petition against the New York Department of Labor payroll card regulations due to go into effect on March 7, 2017, has been granted. The industry had been raising red flags about the regulations, which many feared would result in providers exiting the market, since first proposed in 2015.
New York’s Industrial Board of Appeals ruled on Feb. 16 that the regulations exceeded the Labor Department’s authority and are beyond the scope of the statute. Although industry groups and individual companies had submitted comment letters objecting to various provisions in the regulations that were viewed as too onerous and inconsistent with federal Reg. E requirements, among other concerns, Global Cash Card said it was the only company to challenge the regulations with a formal petition. The commissioner of labor has 60 days to appeal the decision to a court.
“Our reasoning for filing this petition was ensure that both employers and consumers would not be negatively affected by the proposed regulation,” said Global Cash Card President and CEO Joseph F. Purcell. “We’re thrilled that we accomplished this for the benefit of the workforce in New York.”
NBPCA President and CEO Brad Fauss applauded the decision. “The NBPCA is pleased that the New York Department of Labor’s final rule on the methods and payment of wages has been revoked and the nearly 32 percent of New York households who rely on payroll cards will still have access to an affordable, convenient tool to receive, store and access their wages. This rule was an example of unnecessary regulatory overreach that would have ultimately harmed a vulnerable population of consumers whose access to financial services products should be protected by regulators rather than limited. We look forward to working with New York-based employers, employee groups, and other stakeholders to find ways to strengthen consumer access to payroll cards and continue to provide balanced consumer protections to New York workers.”
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