September 11‚ 2012

New York Wage Deduction Amendment Signed into Law

By Michael S. Arnold

Governor Cuomo has finally signed a bill amending New York’s Wage Deduction law (Section 193) to permit employers to deduct certain amounts from employee wages to recover wage overpayments and for the repayment of employer loans. The law also permits employers to deduct certain amounts from an employee’s paycheck for the payment of items such as gym memberships, parking or mass transit passes, and day care, among many other items. The employer must obtain written authorization from the employee before making any deduction.

Employers have long been frustrated by their inability to make these types of deductions, especially as they often benefit the employee as well as the employer. The law goes into effect on November 8, 2012. The complete amendment can be accessed here.

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