• New York Wage Deductions: Amendment is Positive for Employers
  • July 10, 2012 | Author: Aaron N. Einhorn
  • Law Firm: Messner & Reeves, LLC - Denver Office
  • The NY legislature has passed a law expanding permissible wage deductions, including deductions to recover wage overpayments and wage advances.  Other permitted deductions now 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.

    Recently, the NY Department of Labor has taken the position that a wage deduction is not permissible unless it is very similar to deductions expressly recognized in the statute as lawful (e.g. payments for insurance premiums, pension, or health and welfare benefits).  So, the new law is a positive development for employers.

    Governor Cuomo is expected to sign the law.  After the law is passed, the NY Department of Labor must adopt implementing regulations.