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NY Proposes Rules For Paying Workers With Debit Cards

In an effort to stave off "wage theft," New York labor officials have proposed regulations on employers that pay workers with payroll debit cards to prevent them from either profiting or passing along expenses from using the cards. 

The Department of Labor's draft regulations published Wednesday would require employees' consent to take a debit card and require advising where they can withdraw their wages for free "within reasonable proximity" to their homes and workplaces.

Fees for customer service, account maintenance, overdraft and inactivity would be prohibited.

An estimated 13,000 businesses statewide pay about 200,000 workers with debit cards.

The regulations are subject to public comments and could take effect in 45 days.

(c) 2015 AP

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Dave Lucas is WAMC’s Capital Region Bureau Chief. Born and raised in Albany, he’s been involved in nearly every aspect of local radio since 1981. Before joining WAMC, Dave was a reporter and anchor at WGY in Schenectady. Prior to that he hosted talk shows on WYJB and WROW, including the 1999 series of overnight radio broadcasts tracking the JonBenet Ramsey murder case with a cast of callers and characters from all over the world via the internet. In 2012, Dave received a Communicator Award of Distinction for his WAMC news story "Fail: The NYS Flood Panel," which explores whether the damage from Hurricane Irene and Tropical Storm Lee could have been prevented or at least curbed. Dave began his radio career as a “morning personality” at WABY in Albany.
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