Act Now Advisory: New York Labor Law Significantly Expands the Scope of Permissible Wage Deductions .

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New York State has finally codified its position on permissible deductions from employees' wages. On November 6, 2012, an amendment to New York's Labor Law ("Labor Law") will take effect. The amendment expands the list of employee wage deductions that New York employers may lawfully make, so long as the employee authorizes such deductions.

On September 7, 2012, Governor Andrew Cuomo signed into law the legislation that he introduced, which amends Labor Law Section 193 ("Section 193"), relating to permissible deductions from employees' wages. Currently, the Labor Law expressly prohibits deductions from wages, with limited exceptions. Over the past few years, the New York State Department of Labor has issued several opinion letters severely limiting the types of permissible deductions—essentially forbidding any deductions not specifically set forth in pre-amendment Section 193.

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Published In: Administrative Agency Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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