More Wage Deductions to Be Permitted in New York

Author: Michael Cardman, XpertHR Legal Editor

New York employers will soon be allowed to make additional deductions from employees' wages under legislation recently signed into law by New York Gov. Andrew Cuomo.

In addition to the deductions that are currently allowed, the new law amends +NY CLS Labor § 193 to permit employers to make voluntary deductions from employees' wages for:

  • Discounted parking or discounted passes, tokens, fare cards, vouchers or other items that entitle the employee to use mass transit;
  • Fitness center, health club and/or gym membership dues;
  • Cafeteria and vending machine purchases made at the employer's place of business;
  • Purchases at employer-operated gift shops, where the employer is a hospital, college or university;
  • Pharmacy purchases made at the employer's place of business;
  • School tuition, room, board and fees from preschool through post-graduate level;
  • Payments for housing provided at or below market rates by nonprofit hospitals or their affiliates; and
  • Purchases made at events sponsored by a bona fide charitable organization affiliated with the employer where at least 20 percent of the profits from such event are being contributed to a bona fide charitable organization.

Such deductions must be expressly authorized in writing by the employee and be for the benefit of the employee. Employees must first be given written notice of all the terms and conditions of the deductions (and notification of any substantial changes after the deductions are established), and authorization must be voluntary.

The new law also allows employers to make deductions to recover salary advancements and/or overpayments due to mathematical or clerical errors. The New York State Department of Labor is directed to issue regulations that will limit the size of overpayments that may recovered; the timing, frequency and duration of such recoveries; and other conditions.

The new law takes effect Nov. 6, 2012, and expires three years later on Nov. 6, 2015.