This is the Way the NY Payroll Card Challenge Ends. Not with a Bang but a Whimper.

Subscribers of our 50 State Payroll Card Law Blog know that we’ve been keeping pretty close tabs on the challenge to the New York payroll card regulations brought by Global Cash Card. We’ve written about every twist and turn in the legal saga, and it seems that this story has reached its conclusion. The highest court in New York dismissed Global Cash Card’s appeal last week with the following opinion, reproduced below in its anticlimactic entirety: 

Appeal dismissed without costs, by the Court sua sponte, upon the ground that no substantial constitutional question is directly involved.

This dismissal is probably the end of the road for Global Cash Card’s quest to invalidate the New York’s Department of Labor regulations. For those payroll card providers (and employers) that were under the illusion that they didn’t have to comply with the regulations during the pendency of the litigation, this should probably be a wake-up call to get into compliance immediately. If you have questions about the New York regulations or how they apply to your payroll card program, please feel free to contact Steve Middlebrook or Tom Kierner.

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