Legislation Allowing Employers to Make Wage Deductions Awaits Governor's Signature

UPDATE: Governor Cuomo signed this legislation into law on September 7, 2012.
It will go into effect on November 6, 2012.

The New York State Senate and Assembly recently passed a bill amending New York Labor Law section 193 to expand an employer's ability to make deductions from employee wages. The bill is currently awaiting delivery from the New York State Assembly to the governor's office for his approval. The governor's approval is virtually certain as his office previously submitted a memorandum supporting the amendment.

Once effective, the new law will amend Labor Law section 193 to allow employers to make additional wage deductions, with an employee's written consent, for:

  • Prepaid legal plans;
  • Purchases at certain charitable events;
  • Discounted parking or passes, fare cards, or vouchers related to mass transit;
  • Fitness, health club or gym memberships;
  • Cafeteria, vending machines and pharmacy purchases at the employer's premises;
  • Tuition, room, board and fees related to certain education institutions; and
  • Certain child care expenses.

To learn more about the legislation and its potential implications for employers, please continue reading Littler's ASAP, Wage Deductions Almost Legal in NY? Legislation Allowing Employers to Make Wage Deductions Awaits Governor's Signature, by Bruce Millman and Adam Colón.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.