2010 New York Code
BNK - Banking
Article 3 - (94 - 140-A) BANKS AND TRUST COMPANIES
96-B - Payroll payment by banks or trust companies.

§ 96-b.  Payroll  payment  by banks or trust companies. l.  Every bank
  and trust company shall have the power to enter into contracts with  any
  municipal  corporation,  school  district, district corporation, town or
  county improvement district, public authority, or public corporation  to
  receive  in  a single payment, for each pay period, the total payroll of
  such corporations, districts or authorities  and  deposit  the  same  in
  accordance  with  the  terms  of  such  contract,  which  shall  include
  provision for deposits for withholding,  retirement  and  insurance,  if
  any.
    2.  The  amount  due  each  employee shall be disbursed or credited in
  accordance with the directions of each employee to  saving  or  checking
  accounts, or loan or mortgage accounts within such bank or trust company
  or  to a single account in another bank or trust company or savings bank
  or savings and loan association or may be payable in cash or by check to
  such employee.