On May 23, an acting justice of the New York State Supreme Court issued a decision, order, and judgement in the ongoing litigation involving New York’s burdensome paycard regulations. The initial decision of the New York Industrial Board of Appeals revoking burdensome regulations regarding payment of wages by direct deposit and paycards, plus other regulations governing wage payment methods, was annulled (declared invalid). The burdensome regulations remain revoked for now, pending further litigation [Reardon v. Global Cash Card and New York State Industrial Board of Appeals, No. 2643-17 (NY Sup. Ct., Alb. Cty. (5-23-18)].
This development is helpful for payroll professionals to know about since it is possible the New York regulations could go into effect at a later date.
What Happens Next?
In New York, the Supreme Court is the lower, trial-level court and the Court of Appeals is the state’s highest court, so this may not be a final ruling. The paycard provider (which is now ADP, since it acquired Global Cash Card in 2017) has until July 6 to appeal the court’s decision. The burdensome New York paycard regulations remain revoked at this time, pending further litigation.
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