The existing legislation is so unworkable that hundreds of thousands of employees have gone underpaid by billions of dollars across the public and private sectors for years.
A new law was meant to be in place at least two years ago.
Instead, the Ministry of Business, Innovation and Employment has started over with consultations.
It is now a month late in choosing who to consult with over a draft bill.
"We have not yet communicated an outcome of the selection process and plan to do that shortly," MBIE told RNZ.
This government has said this would include payroll experts.
The release of the draft of proposed amendments for targeted consultation had been scheduled for later this month.
The consultation could result in further changes before the bill is introduced to Parliament.
The government has sketched out some of the changes it wants from the overhaul, such as easier methods for calculating leave.
The failure to fix the legislation presents problems for many companies and organisations wanting to update their payroll systems.
Health New Zealand has had to divert $25 million out of crucial digital upgrades just to keep its multiple, fragile payroll systems going while it tries to bring in one national system.
Law firm Anderson Lloyd, in an online commentary, said many questions remain.
"What we know about the current proposed changes only reinforces how much uncertainty still needs to be resolved if we are going to get an Act that is truly modern and reflective of the way we work," it said.
"Time will tell if the legislation can be made workable."
