Enables employees to receive electronic confirmation of direct deposit in lieu of paper pay stubs

BILL NUMBER:S828

Title of bill

An act to amend the state finance law, in relation to providing the option to employees of electronic confirmation of direct deposit in lieu of paper pay stubs

Purpose

This bill requires the State Comptroller to offer any employee who receives a salary through direct deposit the option to opt out of receiving a paper pay stub and instead receive the information that would be included in the pay stub electronically.

Summary of provisions

Section 1: Amends subdivision 4 of section 200 of the State Finance Law is re-lettered paragraph (e) and two new paragraphs ¸ and (d) are added:

c) Any employee who requests to have their salary deposited directly in a bank pursuant to this section, may opt out of receiving a paper pay stub and may instead receive electronic confirmation that the direct deposit transfer has gone through.

(d) The comptroller is hereby authorized to promulgate reasonable rules and regulations, as may be necessary to administer the electronic confirmation of direct deposits of employees' salaries established in paragraph (c) of this subdivision. The comptroller shall provide notice of the electronic confirmation system in each employee's paper pay stub.

Section 2: Effective date.

Justification

By allowing employees to have paychecks directly deposited into their bank accounts, New York State has reduced the environmental and economic costs of its payroll administration. unfortunately, all employees even those enrolled ill the Direct Deposit program-still receive printed copies of their pay stubs by mail. This legislation would require the state to give employees the option of receiving their pay stub electronically. In addition to the environmental benefits resulting from the reduced use of paper. electronic pay stubs ensure on-time delivery of payroll information and save resources by eliminating printing, postage and administrative costs. Currently, Minnesota, Florida, Kentucky and South Dakota all have similar programs in place. Under this legislation, employees who prefer printed pay stubs will retain the option to receive a paper copy.

Legislative history

Previously introduced.

Fiscal impact on the state

New York State is likely to save a significant but undetermined amount due to reduced printing and mailing costs.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law. Effective immediately the comptroller is authorized to promulgate any rules and regulations and take any other measures necessary to implement this act on its effective date.