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New York Close to Amending its Wage Deduction Law (Section 193)

By Michael S. Arnold

New York employers will be pleased to know that Governor Cuomo is expected to sign a bill passed last week 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 like gym memberships, parking or mass transit passes and day care, among many other items.  Employers have long been frustrated by their inability to make these types of deductions, especially as they often benefit both the employer and employee.  This change, which will take effect two months after the Governor signs the bill, is likely to be welcomed by employers and employees alike.  The complete amendment can be accessed here.

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