New York State Considering Debit Cards for Payroll

Anyone who’s ever handled a payroll knows how difficult it can be. Turning in invoices, writing checks, mailing them out or making them available for pickup can be difficult to say the least.

That’s got some considering just skipping half the process and issuing debit cards instead, at least in New York. The New York State Department of Labor, meanwhile, seems to have a few things to say about that, and may be poised to take the practice down, or help it foster.

The current reports suggest that, by way of a published proposed rule, currently-established consent is invalid for direct deposit, and as such needs to be reinstated directly at the employee level.

A comment period about said rule is poised to run through July 15, so those interested in weighing in one way or another can so do in that time frame.

Further rules note that employees must be notified in English—or whatever their primary language may be—before being paid by direct deposit, and must be informed that accepting a payment debit card isn’t necessary.

There must also be a means to access the debit card’s funds that doesn’t require payment, and employers most provide notice about these cards with the option to withdraw consent at any time.

That’s a lot of rules, but most seem reasonable enough, and the concept is one that’s fairly exciting.

Consider; there’s a card in your wallet that contains not only your last paycheck, but the balance of all the previous checks since it functions as a kind of hybrid savings / checking account.

Sounds pretty good, and it certainly can save a trip to the bank for those inclined to avoid such trips.

Throw in the ability to pull cash from it—some of us do prefer to work in cash as it’s more privacy-friendly due to its anonymity and easier for budgeting; once you run out of cash, that’s it until you get more—and it’s a very user-friendly proposition.

Throw in the time and effort—and expense—it would save employers and that only improves the picture.

It’s an exciting idea, and one that might catch on. Some rules will be necessary, and New York seems to have them well in hand. That combination of safety and convenience should prove welcome across the spectrum.