The Saga Continues in New York — November 28, 2018

Tom Kierner

The saga of New York payroll card regulations continues with a recent court order. The court has agreed to reconsider its prior decision regarding the New York Department of Labor’s payroll card regulations. It’s still unclear if and when the regulations will go into effect.

If you haven’t been following the developments in New York, here’s a quick recap:

  • The New York Department of Labor (“NY DOL”) issued rules regarding the use of payroll cards to pay employees.
  • The rules were challenged by payroll card program manager, Global Cash Card (“GCC”).
  • The Industrial Board of Appeals (the “Board”) sided with GCC and revoked the rules.
  • The NY DOL petitioned a New York court to review the Board’s revocation.
  • The court annulled the Board’s revocation, relying in part on documents that were not part of the administrative record.
  • GCC then moved to renew and reargue its opposition to the NY DOL’s petition.

On October 15, the court granted GCC’s motion in part and permitted GCC to reargue the prior court order annulling the Board’s revocation. GCC is being given the chance to argue that documents that the court relied on when annulling the Board’s revocation were improperly considered and should be stricken from the record.

What does all this mean for the future of New York’s burdensome payroll card rules? It appears that GCC’s quest to get the rules struck down has temporarily been given new life. Stay tuned to payrollcardlaw.com for additional developments. When we hear anything, we’ll let you know.

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