S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6811
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                     April 6, 2015
                                      ___________
       Introduced  by  M. of A. MORELLE, TITUS -- (at request of the Department
         of Law) -- read once and referred to the Committee on Labor
       AN ACT to amend the labor law, in relation to authorizing and regulating
         the use of payroll cards
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Section 190 of the labor law is amended by adding eight new
    2  subdivisions 10, 11, 12, 13, 14, 15, 16 and 17 to read as follows:
    3    10.  "ACCOUNT"  MEANS  A  DEMAND DEPOSIT (CHECKING), SAVINGS, OR OTHER
    4  CONSUMER ASSET ACCOUNT (OTHER THAN AN OCCASIONAL  OR  INCIDENTAL  CREDIT
    5  BALANCE  IN  A  CREDIT  PLAN) HELD DIRECTLY OR INDIRECTLY BY A FINANCIAL
    6  INSTITUTION AND ESTABLISHED PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD
    7  PURPOSES.
    8    11. "ELECTRONIC FUND TRANSFER" MEANS ANY TRANSFER  OF  FUNDS  THAT  IS
    9  INITIATED  THROUGH  AN  ELECTRONIC  TERMINAL,  TELEPHONE,  COMPUTER,  OR
   10  MAGNETIC TAPE FOR THE PURPOSE OF ORDERING, INSTRUCTING, OR AUTHORIZING A
   11  FINANCIAL INSTITUTION TO DEBIT OR  CREDIT  AN  EMPLOYEE'S  PAYROLL  CARD
   12  ACCOUNT. ELECTRONIC FUND TRANSFER INCLUDES, BUT IS NOT LIMITED TO:
   13    A. POINT-OF-SALE TRANSFERS;
   14    B. AUTOMATED TELLER MACHINE TRANSFERS;
   15    C. DIRECT DEPOSITS OR WITHDRAWALS OF FUNDS;
   16    D. TRANSFERS INITIATED BY TELEPHONE; AND
   17    E.  TRANSFERS  RESULTING  FROM DEBIT CARD TRANSACTIONS, WHETHER OR NOT
   18  INITIATED THROUGH AN ELECTRONIC TERMINAL.
   19    12. "PAYROLL CARD ACCOUNT" MEANS AN ACCOUNT THAT IS DIRECTLY OR  INDI-
   20  RECTLY  ESTABLISHED THROUGH OR BY AN EMPLOYER AND INTO WHICH AN EMPLOYER
   21  DIRECTLY OR INDIRECTLY DEPOSITS AN EMPLOYEE'S WAGES THROUGH AN ELECTRON-
   22  IC FUNDS TRANSFER.
   23    13. "PAYROLL CARD  ISSUER"  MEANS  ANY  BANK,  FINANCIAL  INSTITUTION,
   24  THIRD-PARTY PAYROLL PROCESSOR, OR ANY OTHER PERSON OR ENTITY THAT ISSUES
   25  A PAYROLL CARD TO AN EMPLOYEE ON BEHALF OF AN EMPLOYER.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08769-01-5
       A. 6811                             2
    1    14.  "PAYROLL  CARD" MEANS A CARD ISSUED TO AN EMPLOYEE BY AN EMPLOYER
    2  OR OTHER PAYROLL CARD ISSUER AS A  MEANS  OF  ACCESSING  THE  EMPLOYEE'S
    3  PAYROLL CARD ACCOUNT.
    4    15.  "CARDHOLDER EMPLOYEE" MEANS ANY EMPLOYEE THAT HAS PROVIDED HIS OR
    5  HER EMPLOYER WITH ADVANCE WRITTEN CONSENT AND HAS ELECTED TO RECEIVE HIS
    6  OR HER WAGES THROUGH A PAYROLL CARD ACCOUNT.
    7    16. "PAYMENT OF WAGES THROUGH A PAYROLL CARD ACCOUNT" MEANS PAYMENT OF
    8  WAGES BY MEANS OF ELECTRONIC  FUND  TRANSFER,  OR  DEPOSIT  OR  TRANSFER
    9  THROUGH OTHER MEANS, TO A PAYROLL CARD ACCOUNT.
   10    17.  "RECEIPT  OF  WAGES  THROUGH  A  PAYROLL  CARD ACCOUNT" MEANS THE
   11  RECEIPT OF WAGES BY MEANS OF ELECTRONIC FUND  TRANSFER,  OR  DEPOSIT  OR
   12  TRANSFER THROUGH OTHER MEANS, TO A PAYROLL CARD ACCOUNT.
   13    S  2.  Section  192 of the labor law, as amended by chapter 301 of the
   14  laws of 1974, subdivision 1 as added by chapter 475 of the laws of  1981
   15  and  as  renumbered by chapter 170 of the laws of 1994 and subdivision 2
   16  as amended by chapter 304 of the laws of 2007, is  amended  to  read  as
   17  follows:
   18    S 192. [Cash payment] PAYMENT of wages. 1. [No] AN EMPLOYER MAY PAY OR
   19  TRANSFER  THE  NET  WAGE OR SALARY OF AN EMPLOYEE IN THE FORM OF CASH, A
   20  PAPER CHECK, A DIRECT DEPOSIT TO A BANK OR OTHER FINANCIAL  INSTITUTION,
   21  OR  A  DIRECT  DEPOSIT  TO A PAYROLL CARD ACCOUNT, PROVIDED, HOWEVER, NO
   22  employer shall, without the advance written OR ELECTRONIC consent of any
   23  employee [directly], pay or [deposit] TRANSFER the net wage or salary of
   24  such employee in THE FORM OF A DIRECT DEPOSIT TO a bank or other  finan-
   25  cial institution OR TO A PAYROLL CARD ACCOUNT.
   26    2.  AN EMPLOYER SHALL NOT INITIATE PAYMENT OF WAGES TO THE EMPLOYEE BY
   27  ELECTRONIC FUNDS TRANSFER TO A PAYROLL CARD ACCOUNT UNLESS THE  EMPLOYER
   28  ALSO  OFFERS  THE  EMPLOYEE THE OPTIONS OF PAYMENT BY PAPER CHECK AND BY
   29  DIRECT DEPOSIT TO A DEPOSITORY ACCOUNT DESIGNATED BY THE  EMPLOYEE.  FOR
   30  PURPOSES  OF THIS ARTICLE, A PAPER CHECK SHALL NOT INCLUDE A CONVENIENCE
   31  CHECK OR ANY OTHER CHECK DRAWN UPON AN EMPLOYEE'S PAYROLL  CARD  ACCOUNT
   32  AND  WHICH  MUST BE COMPLETED BY THE EMPLOYEE, UNLESS THE EMPLOYER TAKES
   33  ALL STEPS TO RENDER THE CONVENIENCE CHECK ABLE TO BE IMMEDIATELY  DEPOS-
   34  ITED  OR  CASHED,  INCLUDING  FILLING  OUT THE CHECK ITSELF PROPERLY AND
   35  ACCURATELY WITH THE CORRECT NET WAGE DOLLAR AMOUNT.
   36    3.  AT ANY TIME, AN EMPLOYEE  MAY,  IN  WRITING,  WITHDRAW  PREVIOUSLY
   37  GRANTED  WRITTEN  CONSENT  TO  BE PAID HIS OR HER WAGES IN THE FORM OF A
   38  DIRECT DEPOSIT TO A BANK OR OTHER FINANCIAL INSTITUTION OR TO A  PAYROLL
   39  CARD  ACCOUNT. AN EMPLOYER SHALL, WITHIN TWO PAY PERIODS OF SUCH EMPLOY-
   40  EE'S WRITTEN NOTIFICATION, CEASE PAYING THE EMPLOYEE'S WAGES IN THE FORM
   41  OF A DIRECT DEPOSIT TO A BANK OR OTHER FINANCIAL  INSTITUTION  OR  TO  A
   42  PAYROLL CARD ACCOUNT.
   43    4.  AN  EMPLOYER  SHALL  MAINTAIN  AND  PRESERVE,  FOR THE TIME PERIOD
   44  PRESCRIBED FOR PAYROLL RECORDS UNDER SUBDIVISION  FOUR  OF  SECTION  ONE
   45  HUNDRED NINETY-FIVE OF THIS ARTICLE, A COPY OF ANY WRITTEN AUTHORIZATION
   46  OBTAINED UNDER THIS SECTION.
   47    5.  This section shall not apply to any person employed in a bona fide
   48  executive, administrative, or professional capacity whose  earnings  are
   49  in excess of nine hundred dollars a week[, nor to employees working on a
   50  farm not connected with a factory].
   51    S  3.  The  labor  law  is amended by adding three new sections 192-a,
   52  192-b and 192-c to read as follows:
   53    S 192-A. PAYMENT OF WAGES TO A PAYROLL CARD ACCOUNT. 1.  EVEN WHERE AN
   54  EMPLOYER MEETS THE REQUIREMENTS OF SECTION  ONE  HUNDRED  NINETY-TWO  OF
   55  THIS ARTICLE, AN EMPLOYER MUST, PRIOR TO OBTAINING AN EMPLOYEE'S WRITTEN
   56  CONSENT  AS  REQUIRED BY SECTION ONE HUNDRED NINETY-TWO OF THIS ARTICLE,
       A. 6811                             3
    1  PROVIDE SUCH EMPLOYEE WITH WRITTEN NOTICE OF THE TERMS AND CONDITIONS OF
    2  THE PAYROLL CARD PROGRAM IN  ENGLISH  AND  IN  THE  LANGUAGES  THAT  THE
    3  EMPLOYER  PRIMARILY  USES  TO COMMUNICATE EMPLOYMENT RELATED POLICIES TO
    4  ITS EMPLOYEES. SUCH NOTICE MUST INCLUDE, BUT IS NOT LIMITED TO:
    5    A.  A CLEAR, CONSPICUOUS AND ITEMIZED LIST, IN AT LEAST 12 POINT FONT,
    6  OF ANY AND ALL FEES THAT MAY BE ASSESSED BY THE PAYROLL CARD ISSUER;
    7    B.  A CLEAR, CONSPICUOUS AND ITEMIZED LIST, IN AT LEAST 12 POINT FONT,
    8  OF ANY AND ALL FEES THAT MAY BE ASSESSED BY THIRD PARTIES;
    9    C.  A  PLAIN LANGUAGE DESCRIPTION OF ALL OF THE METHODS AVAILABLE TO A
   10  CARDHOLDER EMPLOYEE TO ACCESS HIS OR HER WAGES WITHOUT INCURRING A FEE;
   11    D. A PLAIN LANGUAGE DESCRIPTION OF ALL OF THE METHODS AVAILABLE  TO  A
   12  CARDHOLDER  EMPLOYEE  TO  CHECK  THE  BALANCE OF HIS OR HER PAYROLL CARD
   13  ACCOUNT WITHOUT INCURRING A FEE;
   14    E. A LIST OF FIVE LOCATIONS  REASONABLY  PROXIMATE  TO  THE  PLACE  OF
   15  EMPLOYMENT WHERE A CARDHOLDER EMPLOYEE MAY ACCESS HIS OR HER WAGES WITH-
   16  OUT INCURRING A FEE;
   17    F.  TIME  LIMITATIONS TO DISPUTE A CHARGE OR EXPENDITURE TO AN EMPLOY-
   18  EE'S PAYROLL CARD ACCOUNT; AND
   19    G.  A PLAIN LANGUAGE DESCRIPTION OF THE METHODS AVAILABLE TO  A  CARD-
   20  HOLDER  EMPLOYEE TO CLOSE HIS OR HER PAYROLL CARD ACCOUNT AND OBTAIN ALL
   21  FUNDS AT NO CHARGE.
   22    2. AN EMPLOYER SHALL PROVIDE A CARDHOLDER EMPLOYEE WITH THIRTY DAYS OF
   23  WRITTEN NOTICE PRIOR TO ANY CHANGES IN THE TERMS AND CONDITIONS, INCLUD-
   24  ING ANY CHANGES IN FEES, TO HIS OR HER PAYROLL CARD ACCOUNT. SUCH NOTICE
   25  SHALL BE IN ADDITION TO ANY OTHER NOTICE REQUIREMENT IN THIS ARTICLE AND
   26  SHALL INCLUDE ALL  INFORMATION  PROVIDED  IN  SUBDIVISION  ONE  OF  THIS
   27  SECTION.
   28    3.  AN  EMPLOYER  SHALL  NOT  PAY ITS EMPLOYEES THROUGH A PAYROLL CARD
   29  ACCOUNT UNLESS CARDHOLDER EMPLOYEES ARE PROVIDED WITH:
   30    A. AT LEAST ONE NETWORK OF ATMS, LOCATED IN  REASONABLE  PROXIMITY  TO
   31  THE  CARDHOLDER  EMPLOYEE'S  PLACE  OF EMPLOYMENT OR PLACE OF RESIDENCE.
   32  SUCH A NETWORK OF ATMS MUST PERMIT:
   33    (I) UNLIMITED CASH WITHDRAWALS AT NO COST TO THE CARDHOLDER  EMPLOYEE;
   34  AND
   35    (II)  UNLIMITED BALANCE INQUIRIES AT NO COST TO THE CARDHOLDER EMPLOY-
   36  EE.
   37    B. AT LEAST ONE REASONABLY  CONVENIENT  METHOD,  IN  ADDITION  TO  THE
   38  REQUIREMENT OF PARAGRAPH A OF THIS SUBDIVISION, FOR A CARDHOLDER EMPLOY-
   39  EE  TO  WITHDRAW  HIS  OR HER ENTIRE NET PAY, AS STATED ON AN EMPLOYEE'S
   40  EARNING STATEMENT, FOR EACH PAY PERIOD WITHOUT  INCURRING  A  FEE.  SUCH
   41  METHOD  SHALL  BE AVAILABLE TO THE CARDHOLDER EMPLOYEE ON AND AFTER SUCH
   42  EMPLOYEE'S REGULAR PAYDAY AND LOCATED IN  REASONABLE  PROXIMITY  TO  THE
   43  CARDHOLDER EMPLOYEE'S PLACE OF EMPLOYMENT OR PLACE OF RESIDENCE;
   44    C.  A  HARD  COPY PERIODIC STATEMENT, FREE OF CHARGE, FOR EACH MONTHLY
   45  CYCLE IN WHICH ELECTRONIC FUNDS TRANSFER HAS OCCURRED;  AND  A  PERIODIC
   46  STATEMENT  FREE  OF  CHARGE,  AT  LEAST  QUARTERLY  IF  NO  TRANSFER HAS
   47  OCCURRED. IN THE ALTERNATIVE, AN EMPLOYER MAY COMPLY WITH  THIS  SECTION
   48  IF  THE PAYROLL CARD ISSUED MAKES ACCOUNT INFORMATION AVAILABLE TO CARD-
   49  HOLDER EMPLOYEES FREE OF CHARGE THROUGH THE FOLLOWING MEANS:
   50    (I) A READILY AVAILABLE TELEPHONE LINE OPERATED TWENTY-FOUR HOURS  PER
   51  DAY, SEVEN DAYS PER WEEK. SUCH LINE MAY BE AUTOMATED, PROVIDED, HOWEVER;
   52  SUCH  AUTOMATION  SHALL  BE  AVAILABLE  IN THE LANGUAGE OR LANGUAGES THE
   53  EMPLOYER NORMALLY COMMUNICATES HIS OR HER EMPLOYMENT-RELATED POLICIES TO
   54  HIS OR HER EMPLOYEES;
   55    (II) AN ELECTRONIC HISTORY OF  A  CARDHOLDER'S  PAYROLL  CARD  ACCOUNT
   56  TRANSACTIONS,  SUCH AS THROUGH AN INTERNET WEBSITE, THAT COVERS AT LEAST
       A. 6811                             4
    1  TWENTY-FOUR MONTHS PRECEDING THE DATE OF A CARDHOLDER'S ACCESS TO HIS OR
    2  HER PAYROLL CARD ACCOUNT ELECTRONIC HISTORY; AND
    3    (III)  A  NON-ELECTRONIC, WRITTEN HISTORY OF A CARDHOLDER PAYROLL CARD
    4  ACCOUNT TRANSACTIONS THAT IS PROVIDED PROMPTLY IN RESPONSE TO AN ORAL OR
    5  WRITTEN REQUEST AND THAT COVERS AT LEAST SIXTY DAYS PRECEDING  THE  DATE
    6  THAT A PAYROLL CARD ISSUER RECEIVES THE CARDHOLDER EMPLOYEE'S REQUEST;
    7    D. FREE CUSTOMER SERVICE, VIA A LIVE AGENT;
    8    E.  ONE  FREE  REPLACEMENT  PAYROLL  CARD PER YEAR UPON REQUEST OF THE
    9  CARDHOLDER EMPLOYEE, PROVIDED, HOWEVER; A FEE MAY  BE  CHARGED  FOR  THE
   10  COST  OF AN EXPEDITED DELIVERY OF A REPLACEMENT PAYROLL CARD, IF A CARD-
   11  HOLDER EMPLOYEE REQUESTS SUCH DELIVERY.
   12    4.  AN EMPLOYER MAY PAY WAGES THROUGH A PAYROLL CARD ACCOUNT  ONLY  IF
   13  THE PAYROLL CARD ACCOUNT IS:
   14    A.  FULLY  INSURED  BY  THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
   15  NATIONAL CREDIT UNION ADMINISTRATION, OR ANY OTHER INSURER RECOGNIZED BY
   16  THE DEPARTMENT OF FINANCIAL SERVICES, ON A PASS  THROUGH  BASIS  TO  THE
   17  EMPLOYEE;
   18    B. HELD AT A DEPOSITORY INSTITUTION OR OTHER ENTITY WHICH HAS IN PLACE
   19  A  WRITTEN IDENTITY THEFT PROGRAM TO DETECT, PREVENT, AND MITIGATE IDEN-
   20  TITY THEFT IN CONNECTION WITH PAYROLL CARD ACCOUNTS, AS REQUIRED  BY  12
   21  C.F.R. S 41.90; AND
   22    C.  IN  COMPLIANCE WITH THE REQUIREMENTS OF FEDERAL RESERVE REGULATION
   23  E, 12 C.F.R. PARTS 205 AND 1005, TO THE EXTENT REQUIRED FOR PAYROLL CARD
   24  ACCOUNTS AS SET FORTH IN 12 C.F.R. SS 205.18 AND 1005.18.
   25    5. AN EMPLOYER MAY NOT USE A PAYROLL CARD PROGRAM IN WHICH THE PAYROLL
   26  CARD OR PAYROLL CARD ACCOUNT IS LINKED TO ANY FORM OF CREDIT  INCLUDING,
   27  BUT  NOT  LIMITED  TO,  A  LOAN  AGAINST FUTURE PAY OR A CASH ADVANCE ON
   28  FUTURE PAY.
   29    6. AN EMPLOYER MAY USE A PAYROLL CARD  PROGRAM  THAT  ALLOWS  FOR  THE
   30  PROVISION  OF A SECOND, ADDITIONAL PAYROLL CARD TO A CARDHOLDER EMPLOYEE
   31  UPON THE CARDHOLDER EMPLOYEE'S WRITTEN REQUEST. A SINGLE, ONE-TIME  FEE,
   32  NOT  TO EXCEED FIVE DOLLARS, MAY BE CHARGED FOR ISSUANCE AND MAINTENANCE
   33  OF A SECONDARY CARD.
   34    7. UPON TERMINATION OF A CARDHOLDER  EMPLOYEE'S  EMPLOYMENT,  OR  UPON
   35  RECEIVING  NOTICE  OF  THE CARDHOLDER EMPLOYEE'S SEPARATION FROM EMPLOY-
   36  MENT, THE EMPLOYER SHALL PROVIDE THE  EMPLOYEE  WITH  A  WRITTEN  NOTICE
   37  ADVISING  THE  EMPLOYEE  THAT  HE  OR SHE MAY, AT NO COST, TERMINATE THE
   38  PAYROLL CARD AND RECEIVE THE FULL BALANCE PAYABLE BY CHECK  WITHIN  FIVE
   39  BUSINESS  DAYS.  THE  EMPLOYER SHALL DISCLOSE, IN THE MANNER PROVIDED BY
   40  THIS SECTION, THE TERMS AND CONDITIONS, INCLUDING ANY AND ALL  FEES  AND
   41  COSTS, RELATED TO MAINTAINING A PAYROLL CARD ACCOUNT THE UPON THE TERMI-
   42  NATION OF THE EMPLOYMENT RELATIONSHIP.
   43    S 192-B. CONFIDENTIALITY OF EMPLOYEE INFORMATION. 1. AN EMPLOYER SHALL
   44  NOT DISCLOSE AN EMPLOYEE'S PERSONAL IDENTIFYING INFORMATION TO A PAYROLL
   45  CARD  ISSUER  UNLESS  SUCH EMPLOYER HAS RECEIVED ADVANCE WRITTEN CONSENT
   46  FROM SUCH EMPLOYEE.   FOR THE PURPOSES OF  THIS  SUBDIVISION,  "PERSONAL
   47  IDENTIFYING INFORMATION" SHALL INCLUDE THE EMPLOYEE'S NAME, SOCIAL SECU-
   48  RITY  NUMBER,  HOME  ADDRESS, TELEPHONE NUMBER (HOME, MOBILE, OR OTHER),
   49  PERSONAL ELECTRONIC MAIL ADDRESS, INTERNET IDENTIFICATION NAME OR  PASS-
   50  WORD,  EMPLOYEE'S  OR  PARENT'S  SURNAME  PRIOR TO MARRIAGE, OR DRIVER'S
   51  LICENSE NUMBER.
   52    2. NO EMPLOYER SHALL RECEIVE, ACCEPT, MAINTAIN, OR POSSESS ANY  INFOR-
   53  MATION  OBTAINED  BY  THE  PAYROLL CARD ISSUER REGARDING ANY TRANSACTION
   54  MADE BY AN EMPLOYEE CARDHOLDER INCLUDING, BUT NOT LIMITED TO:
   55    A. SERVICES OR GOODS PURCHASED;
       A. 6811                             5
    1    B. THE NAME OR TYPE OF THE BUSINESS IN WHICH  A  SERVICE  OR  GOOD  IS
    2  PURCHASED;
    3    C.  TIME,  DATE  OR  LOCATION OF ANY AND ALL PURCHASES, WITHDRAWALS OR
    4  BALANCE INQUIRIES; AND
    5    D. FEES OR PENALTIES ASSESSED BY THE PAYROLL CARD  ISSUER.    HOWEVER,
    6  THIS  INFORMATION  MAY  BE  PROVIDED IN THE AGGREGATE OR SUMMARIZED FORM
    7  WITHOUT IDENTIFYING INDIVIDUAL EMPLOYEES.
    8    3. EACH CARDHOLDER EMPLOYEE SHALL BE PROVIDED WITH A COPY OF  ANY  AND
    9  ALL  "CONSUMER  PRIVACY" POLICIES AND/OR NOTICES REQUIRED BY LAW.  CARD-
   10  HOLDER EMPLOYEES MAY NOT BE  AUTOMATICALLY  SENT  ANY  DIRECT  MARKETING
   11  MATERIALS  OR  ENROLLED  IN ANY MARKETING PROGRAMS, ALTHOUGH THEY MAY BE
   12  GIVEN THE OPTION TO "OPT IN" TO RECEIVING DIRECT MARKETING MATERIALS.
   13    4. A PAYROLL CARD ISSUER SHALL DISCLOSE ANY BREACH OF SECURITY TO  ALL
   14  AFFECTED  CARDHOLDER EMPLOYEES AND THE EMPLOYER OF SUCH EMPLOYEES WITHIN
   15  TWENTY-FOUR HOURS OF SUCH BREACH, OR AS SOON AS REASONABLY PRACTICABLE.
   16    S 192-C. PROHIBITED ACTS. NO EMPLOYER SHALL:
   17    1. INTIMIDATE, THREATEN, COERCE, OR  OTHERWISE  PRESSURE  AN  EMPLOYEE
   18  INTO CONSENTING TO BE PAID WAGES THROUGH A PAYROLL CARD ACCOUNT;
   19    2.  OBTAIN  AN  EMPLOYEE'S  CONSENT  TO BE PAID THROUGH A PAYROLL CARD
   20  ACCOUNT THROUGH MEANS THAT ARE UNFAIR, DECEPTIVE, OR ABUSIVE;
   21    3. REQUIRE AS A CONDITION OF ANY EMPLOYEE'S HIRE OR CONTINUED  EMPLOY-
   22  MENT THAT SUCH EMPLOYEE BE PAID WAGES THROUGH A PAYROLL CARD ACCOUNT;
   23    4.  RETALIATE  OR  TAKE ADVERSE EMPLOYMENT ACTION AGAINST ANY EMPLOYEE
   24  WHO DOES NOT CHOOSE TO BE PAID THROUGH A PAYROLL CARD ACCOUNT;
   25    5. RETALIATE OR TAKE ADVERSE EMPLOYMENT ACTION AGAINST ANY  CARDHOLDER
   26  EMPLOYEE BASED UPON ANY CARDHOLDER EMPLOYEE TRANSACTIONS MADE THROUGH OR
   27  ANY INFORMATION GENERATED BY THE CARDHOLDER EMPLOYEE'S POSSESSION OR USE
   28  OF A PAYROLL CARD;
   29    6. PAY WAGES TO AN EMPLOYEE THROUGH A PAYROLL CARD ACCOUNT THAT CHARG-
   30  ES A FEE TO A CARDHOLDER EMPLOYEE FOR ANY OF THE FOLLOWING:
   31    A.  INITIATION, PARTICIPATION, LOADING, OR OTHER FEES TO RECEIVE WAGES
   32  PAYABLE IN AN ELECTRONIC FUND TRANSFER TO A PAYROLL CARD ACCOUNT;
   33    B. INACTIVITY, DORMANCY, OR OTHER  FEE  RESULTING  FROM  A  CARDHOLDER
   34  EMPLOYEE'S NON-USE OF HIS OR HER PAYROLL CARD ACCOUNT;
   35    C. ACCOUNT MAINTENANCE OR MONTHLY MAINTENANCE;
   36    D. ANY POINT OF SALE DEBIT OR SIGNATURE TRANSACTION;
   37    E. THE FIRST TWO DECLINED SALES OR ATM TRANSACTIONS OF EACH MONTH;
   38    F. CLOSING AN ACCOUNT;
   39    G.  THE  ISSUANCE OF A REPLACEMENT CARD IN ACCORDANCE WITH PARAGRAPH E
   40  OF SUBDIVISION THREE OF SECTION ONE HUNDRED NINETY-TWO-A OF  THIS  ARTI-
   41  CLE; OR
   42    H.  UNDISCLOSED  FEES  IMPOSED  BY THE EMPLOYER OR PAYROLL CARD ISSUER
   43  THAT WERE NOT PREVIOUSLY DISCLOSED TO THE CARDHOLDER EMPLOYEE;
   44    7. RECEIVE ANY CONSIDERATION FROM A PAYROLL CARD ISSUER INCLUDING, BUT
   45  NOT LIMITED TO COMPENSATION, BONUS, OR REWARD BASED UPON:
   46    A. A PORTION OF ANY PAYROLL CARD-RELATED FEES PAID BY SUCH  EMPLOYER'S
   47  CARDHOLDER EMPLOYEES, OR
   48    B.  THE  NUMBER OF EMPLOYEES WHO ARE PAID WAGES THROUGH A PAYROLL CARD
   49  ACCOUNT.  NOTHING IN THIS SECTION SHALL PRECLUDE EMPLOYERS FROM  RECEIV-
   50  ING A BULK RATE OR VOLUME DISCOUNT BASED ON THE NUMBER OF EMPLOYEES THAT
   51  CHOOSE TO RECEIVE WAGES THROUGH A PAYROLL CARD ACCOUNT;
   52    8. PAY WAGES TO AN EMPLOYEE THROUGH A PAYROLL CARD ACCOUNT THAT CHARG-
   53  ES ANY CARDHOLDER EMPLOYEE AN OVERDRAFT FEE UNDER ANY CIRCUMSTANCES.
   54    S  4.    Subdivisions  1-a  and  3 of section 198 of the labor law, as
   55  amended by chapter 564 of the laws of 2010, are amended and a new subdi-
   56  vision 5 is added to read as follows:
       A. 6811                             6
    1    1-a. On behalf of any employee paid less than the wage to which he  or
    2  she  is  entitled  under the provisions of this article, OR ALLEGING ANY
    3  OTHER VIOLATION OF THIS ARTICLE, the commissioner may  bring  any  legal
    4  action necessary, including administrative action, to collect such claim
    5  and  as part of such legal action, in addition to any other remedies and
    6  penalties otherwise available under this article, the commissioner shall
    7  assess against the employer the full amount of  any  such  underpayment,
    8  and  an  additional  amount  as  liquidated damages, unless the employer
    9  proves a good faith basis for believing that its underpayment  of  wages
   10  was  in  compliance with the law. Liquidated damages shall be calculated
   11  by the commissioner as no more than one hundred  percent  of  the  total
   12  amount  of wages found to be due. In any action instituted in the courts
   13  [upon a wage claim] by an employee or the commissioner FOR  A  VIOLATION
   14  OF  THIS  ARTICLE  in which the employee prevails, the court shall allow
   15  such employee to recover the full amount of any underpayment, ANY  OTHER
   16  APPROPRIATE  RELIEF,  INCLUDING INJUNCTIVE RELIEF, all reasonable attor-
   17  ney's fees, prejudgment interest as required under  the  civil  practice
   18  law  and  rules,  and,  unless the employer proves a good faith basis to
   19  believe that its underpayment of wages was in compliance with  the  law,
   20  an  additional amount as liquidated damages equal to one hundred percent
   21  of the total amount of the wages found to be due.
   22    3. Notwithstanding any other provision of law, an  action  to  recover
   23  upon  a  liability  imposed by this article must be commenced within six
   24  years.  The statute of limitations shall be  tolled  from  the  date  an
   25  employee  files  a  complaint  with the commissioner or the commissioner
   26  commences an investigation, whichever is  earlier,  until  an  order  to
   27  comply  issued  by  the commissioner becomes final, or where the commis-
   28  sioner does not issue an order, until the date on which the commissioner
   29  notifies the complainant that the investigation has concluded.  Investi-
   30  gation  by  the  commissioner  shall  not be a prerequisite to nor a bar
   31  against a person bringing a civil action under this section. All employ-
   32  ees shall have the right to recover full wages,  DAMAGES,  benefits  and
   33  wage  supplements  and  liquidated  damages accrued during the six years
   34  previous to the commencing of such action, whether such action is insti-
   35  tuted by the employee or by the commissioner.
   36    5. A COURT OF COMPETENT JURISDICTION MAY ENJOIN AN  EMPLOYER  WHO  HAS
   37  COMMITTED  REPEAT  OR WILLFUL VIOLATIONS OF ANY PROVISION OF SECTION ONE
   38  HUNDRED  NINETY-TWO-A,  ONE  HUNDRED   NINETY-TWO-B   OR   ONE   HUNDRED
   39  NINETY-TWO-C  OF  THIS  ARTICLE  FROM PAYING EMPLOYEES' WAGES BY PAYROLL
   40  CARD FOR A PERIOD OF TWO YEARS. THE  COMMISSIONER  MAY  ISSUE  AN  ORDER
   41  PROHIBITING  AN  EMPLOYER WHO HAS COMMITTED REPEAT OR WILLFUL VIOLATIONS
   42  OF ANY PROVISIONS OF  THIS  SECTION  FROM  PAYING  EMPLOYEES'  WAGES  BY
   43  PAYROLL  CARD FOR A PERIOD OF TWO YEARS. THE TWO YEAR PERIOD OF PROHIBI-
   44  TION SHALL COMMENCE SIXTY DAYS  FROM  THE  DATE  OF  THE  COMMISSIONER'S
   45  ORDER, OR SIXTY DAYS AFTER FINAL DISPOSITION OF ANY APPEAL, WHICHEVER IS
   46  LATER.
   47    S  5.  Subdivision  3  of  section 198 of the labor law, as amended by
   48  chapter 537 of the laws of 2014, is amended to read as follows:
   49    3. Notwithstanding any other provision of law, an  action  to  recover
   50  upon  a  liability  imposed by this article must be commenced within six
   51  years. The statute of limitations shall  be  tolled  from  the  date  an
   52  employee  files  a  complaint  with the commissioner or the commissioner
   53  commences an investigation, whichever is  earlier,  until  an  order  to
   54  comply  issued  by  the commissioner becomes final, or where the commis-
   55  sioner does not issue an order, until the date on which the commissioner
   56  notifies the complainant that the investigation has concluded.  Investi-
       A. 6811                             7
    1  gation  by  the  commissioner  shall  not be a prerequisite to nor a bar
    2  against a person bringing a civil action under this section. All employ-
    3  ees shall have the right to recover full wages,  DAMAGES,  benefits  and
    4  wage  supplements  and  liquidated  damages accrued during the six years
    5  previous to the commencing of such action, whether such action is insti-
    6  tuted by the employee or by the commissioner. The commissioner's  inves-
    7  tigation  shall  cover the entire six-year statute of limitations period
    8  unless the commissioner otherwise notifies all affected employees.
    9    S 6. Severability clause. The provisions of this act are severable. If
   10  any phrase, clause, sentence, or provision of this act is declared to be
   11  invalid or preempted in whole or in part by any  federal  law  or  regu-
   12  lation, the validity of the remainder of this act shall not be affected.
   13    S 7. This act shall take effect on the one hundred eightieth day after
   14  it  shall  have  become a law; provided, however, that if chapter 537 of
   15  the laws of 2014 is not in effect on such date,  then  section  five  of
   16  this  act  shall  take effect on the same date and in the same manner as
   17  such chapter of the laws of 2014 takes effect.