What's happening
This bill allows employers to directly deposit wages without written employee consent, with certain protections and exceptions.
Why it matters
Increases employer flexibility. By removing the need for advance written consent, the bill enables employers to more easily implement direct deposit payroll systems, potentially reducing administrative burdens and payroll costs.
Maintains worker choice and protections. Although written consent is no longer required, the bill specifically prohibits employers from mandating that employees use a particular bank or financial institution, preserving employee autonomy over their banking choices.
Collective bargaining safeguard. For employees covered by unions, employers cannot implement direct deposit without first securing agreement from the collective bargaining unit, ensuring that unionized workers retain a say in how wages are paid.
Targeted exceptions. The bill carves out exceptions for farm workers and those employed by small businesses, meaning these groups would not be affected by the new direct deposit provisions, potentially reflecting differing needs or vulnerabilities in these sectors.
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Who cares
Headline styles
Allow Direct Wage Deposit
Plain English, a few words. Used as the page title.
Sponsors
1 Multi-sponsor
History
- Held for consideration in labor
- Referred to labor
- Referred to labor
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6306
2017-2018 Regular Sessions
IN ASSEMBLY
March 2, 2017
Introduced by M. of A. FINCH -- read once and referred to the Committee on Labor
AN ACT to amend the labor law, in relation to the direct pay or deposit of wages in a bank or other financial institution
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 192 of the labor law, as amended by chapter 301 of the laws of 1974, subdivision 1 as added by chapter 475 of the laws of 1981 and as renumbered by chapter 170 of the laws of 1994, subdivision 2 as amended by chapter 304 of the laws of 2007, is amended to read as follows:
§ 192. Cash payment of wages. 1. [No] An employer [shall without the advance written consent of any employee] may directly pay or deposit the net wage or salary of [such] an employee in a bank or other financial institution.
2. This section shall not apply to any person [employed in a bona fide executive, administrative, or professional capacity whose earnings are in excess of nine hundred dollars a week, nor to employees] working on a farm not connected with a factory or employed by a small business as defined in section one hundred two of the state administrative procedure act.
3. No provision of this section shall authorize an employer to select or mandate a specific bank or other financial institution for the purposes of making direct deposits on behalf of employees.
4. No employer, who has a duty to bargain, shall make such deposits for employees covered by a collective bargaining unit until an agreement authorizing such deposits has been ratified by such collective bargaining unit.
§ 2. This act shall take effect on the ninetieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00778-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.