|October 26, 2012|
Previously published on October 22, 2012
On July 3, we informed you that the New York legislature had passed a law expanding the types of wage deductions permitted in New York. Governor Cuomo recently signed that law into effect.
Most notably, the new law permits deductions to recover wage overpayments and wage advances. Other permitted deductions include deductions for: (1) discounted parking costs; (2) certain mass transit costs; (3) gym membership dues; (4) certain cafeteria, vending machine, and gift shop purchases; (5) pharmacy purchases made at the employer’s place of business; (6) tuition, room, and board payments for educational pursuits; and (7) day care costs.
The law requires the New York Department of Labor to adopt implementing regulations, including regulations defining the scope, frequency, and timing of deductions made for wage advances. These regulations, which have not been adopted yet, will be crucial for complying with the new law.
We will continue to monitor and will provide additional details on our blog when regulations (or proposed regulations) are adopted.