Governor Cuomo Signs Law Establishing Additional Categories Of Permissible Wage Deductions For New York Employers

more+
less-

On Friday, September 7, Governor Cuomo signed a law that will allow New York employers to make additional types of deductions from employee pay with the employee’s consent. Bill A10785-2011 (Assembly), S7790-2011 (Senate). The law, with some restrictions, also permits employers to use wage deductions (1) to recapture over-payments of wages due to clerical errors and (2) for repayment of wage advances given to employees.

Deductions for the Benefit of the Employee -

The existing New York Labor Law § 193 strictly limits the types of deductions employers may take. It permits only deductions “made in accordance with the provisions of any law or governmental agency’s rule or regulation,” as well as deductions authorized by the employee and made “for the benefit of the employee,” which are limited to “payments for insurance premiums, pension or health and welfare benefits, contributions to charitable organizations, payments for United States bonds, payments for dues or assessments to a labor organization, and similar payments for the benefit of the employee.” NYLL § 19 (a)-(b). The New York Court of Appeals construed “similar payments” very narrowly in a pair of cases, barring employers from making almost any deduction other than those listed above – even if the employee desired it. See Angello v. Labor Ready, Inc., 7 N.Y.3d 579 (2006); Marsh v. Prudential Securities, Inc., 1 N.Y.3d 146 (2003).

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Patterson Belknap Webb & Tyler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »