Governor Cuomo Signs Amendment to New York Wage Deduction Law

On September 7, 2012, Governor Cuomo signed a law that will relax some of the stringent prohibitions against wage deductions under New York Law.  Beginning on November 6, 2012, the law will now permit employers, with voluntary employee consent, to take wage deductions for certain employee benefits such as health club membership dues and cafeteria purchases. (See Amendment to New York’s Labor Law Expands the Universe of Permissible Wage Deductions)  Significantly, Section 193 of the New York Labor Law will now allow employers to take wage deductions to recoup overpayments of wages due to mathematical or clerical errors.  However, the New York Department of Labor is expected to issue regulations on how these overpayments will be allowed to be deducted.  The amendment also imposes heightened requirements on the type of notice and authorizations that employers must obtain from their employees before taking any of the newly authorized deductions, and employers will be expected to keep those authorizations for their employees’ entire career and for six years after the end of employment.  Even with these hurdles, employers will welcome this reprieve from New York’s restrictive wage deduction laws.  Click here to read the full alert.