Governor Cuomo has signed a much-anticipated new law that expands allowable deductions that employers may make from New York employees’ pay. Reversing recent New York Department of Labor rulings, the new law will permit deductions for prior wage overpayments and unearned paid leave advances, as well as for prepaid legal plans, purchases at charity events, discounted parking or passes, vouchers related to mass transit, health club memberships, cafeteria purchases, and deductions for tuition and certain child care expenses. Signed on September 7, 2012, the law will go into effect sixty days later, on November 6, 2012. However, employers may need to await publication of Department of Labor regulations, required by the new law, before beginning to make some of the deductions that will now be permitted. Littler has published a Littler ASAP that describes the new law in detail. It may be found at http://www.littler.com/publicationpress/publication/wage-deductions-almost-legal-ny-legislation-allowing-employers-makewa
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Legislation allowing employers to make wage deductions signed by Governor Cuomo
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