Just when you thought that New York State had imposed on the state’s businesses virtually every regulation its many bureaucrats could come up with, we recently learned that the state Department of Labor is preparing to impose a new regulatory mandate on businesses that pay their employees via direct deposit.
Under new rules the state Labor Department proposed last month, even businesses that have been paying their employees via direct deposit employees for years will have to obtain a new written authorization within six months, or start paying employees via check.
The Labor Department says that its pending rules are well-intentioned, and we do not doubt that they are. Just like every other well-intentioned regulatory mandate that has driven employers (and the jobs they provide) out of Upstate New York.
Unshackle Upstate plans to submit comments to the Department of Labor urging them to reconsider their retroactive application off this rule, and its nonsensical requirement that employers obtain (and keep on file for six years after the employee leaves their job) a new direct deposit consent.
Our message to the Department of Labor is simple: please don’t feel the need to fix situations that are not broken. Upstate employers have enough problems to worry about – high taxes, workers’ comp and energy costs; competition from businesses in lower-cost states; complying with existing state regulations; finding qualified workers, and more.