New York officials say new regulations require payroll card companies to eliminate fees for account maintenance, overdrafts, checking on balances and inactivity.
The regulations, first proposed last year, also require the companies to provide access to at least one no-fee ATM near where employees live or work and prevent card issuers from receiving kickbacks for paying wages using cards.
State labor officials say an estimated 13,000 businesses in New York pay about 200,000 workers using debit cards that often have hidden fees for getting cash or checking balances.
Since many of those lack bank accounts, they use ATMs that require additional fees.
Employers in New York are required to provide employees with a wage statement or pay stub each payday and keep records of time worked, pay rates and deductions.