New York attorney general backs payroll card regulations

New York is looking to regulate payroll cards with a new bill.

Earlier this month, this blog covered a bill that is currently working its way through the Illinois state government that would clarify the parameters for companies using direct deposit payroll cards as a way to pay employees. Now another state is getting on this bandwagon.

According to recent article from The New York Times, New York's attorney general Eric Schneiderman is taking up a battle to regulate the use of payroll cards through a new piece of legislation. The goal of the bill is to protect employees as there is concern that low wage workers can be unfairly targeted.

"The goal of this legislation is to move past the stage where we're trying to chase down individual employers with laws that were not written with payroll laws in mind," Schneiderman told the news source.

He went on to say that guidance is needed to ensure that no employee is taken advantage of. This would happen by ensuring workers are well aware of all fees associated with a payroll card, forcing companies to offer alternative payment methods like direct deposit or check and making sure that there is an ATM network available locally where wages can be withdrawn for free.

Payroll cards are often a cheaper alternative for employers than paper checks, and they provide employees without a bank account with a safer way to get paid. However, the process still has some major kinks to be worked out. This legislation and others like it will help create a better path into the future.

by Ty Hardison

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