New York Attorney General Eric Schneiderman has introduced a bill that would impose new regulations on employers that pay workers through payroll cards.
The Payroll Card Act would require employers in New York to issue payroll cards that would allow for employees to access their funds through at least one ATM network that would not charge withdrawal fees. If passed, the law would also require employers to give employees the option of being paid via direct deposit into bank accounts or paper checks. Employees would also have to be given full terms and conditions of prepaid cards, including all fees charged for their use.
Schneiderman introduced the legislation after conducting a study of payroll cards in New York that found that fees related to some payroll card programs could be as high as $20 a month.
&"Workers should not have to pay unfair fees in order to cash their paychecks," Attorney General Schneidermansaid in a news release. "While payroll cards can be helpful for employees without bank accounts, programs often impose fees that chip away at people's hard-earned wages.