wage deductions

Better Late Than Never: The New York State Department of Labor Finally Issues Regulations on Permissible Wage Deductions

Almost one year after the New York Labor Law was amended to expand the scope of permissible wage deductions, on October 9, 2013, the New York Department of Labor has finally issued regulations that allow employers to take advantage of the changes to the law. READ MORE

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.

Amendment to New York’s Labor Law Expands the Universe of Permissible Wage Deductions

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The New York State Legislature recently passed a bill amending New York Labor Law Section 193 and establishing new categories of permissible wage deductions that employers may take with the consent of employees. In addition to allowing employers (with employee consent) to recoup advances on wages or accidental overpayments, the new amendments also permit employee-approved deductions for things such as discounted mass transit tickets; gym membership dues; cafeteria or pharmacy purchases made at the employer’s place of business; and education and child care expenses. Both employers and employees are expected to benefit from the flexibility permitted by the bill, although implementing regulations from the New York Department of Labor have yet to be enacted.

With respect to deductions related to recovering accidental overpayments of wages or wage advancements, the bill instructs the New York Department of Labor to issue regulations governing the periodic amount of recovery or repayment; the timing, frequency, duration and method of recovery or repayment; a requirement that notice to be provided to employees before commencing the recovery or repayment; and a requirement that employers implement procedures for disputing the amount of overpayment or repayment or seeking to delay commencement of repayment or recovery. Employers are advised to wait until these regulations are enacted before acting on the bill, and should also take care to ensure compliance with the bill’s new record keeping requirements.

The amendment is expected to be signed into law by Governor Andrew Cuomo and will become effective 60 days after enactment. The bill contains a sunset provision, which provides that the law shall expire and be deemed repealed three years after the effective date. The text of the bill is available here.