“Of the many issues swirling around Albany as the
legislative session draws to a close,” New York Attorney General Eric T. Schneiderman
wrote in an Op-Ed published in amNewYork, “few should be less controversial
than ensuring New Yorkers are paid the wages they earn, without getting cheated
or charged when they try to spend their money.” The AG continued, “New Yorkers
deserve legal protection to make sure payroll cards do not chip away at their
wages,” and he urged the state legislature to protect workers by passing his
legislative program—My Payroll Card Act—“before this session ends next month.”
My Payroll Card Act seeks to increase cardholder protections
for workers; resolve ambiguities in New York’s labor law to set forth clear
rules for both employers and employees on the use of payroll cards; and ensure
that payroll cards offer a convenient, beneficial, and fair method for workers
to access their pay. Schneiderman recently announced that he had secured
legislative sponsorship for the measure.
Payroll cards are prepaid debit cards used in lieu of
paychecks and direct deposits. Schneiderman noted that payroll cards do offer
benefits over paper checks, including greater efficiency and reduced
environmental impact. Also, they can be more reliable during natural disasters
and provide a useful alternative for workers without bank accounts, who may
otherwise have to pay check-cashing companies.
However, fees for withdrawals, purchases, and checking the
account balance can run as high as $20 per month. Schneiderman wrote that
passing the legislation would ensure that “New Yorkers are paid the wages they
earn, without getting cheated or charged when they try to spend their money.”
Should the state legislature fail to act, the AG continued, the state
Department of Labor should issue regulations to protect workers.
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