New York Labor Law Wage Deduction Amendments Extended Through 2018

On the eve of  November 6, 2015 expiration date, New York Governor Andrew Cuomo signed legislation earlier this week (Assembly Bill A07594/S05623) extending the effective date for the expanded list of permissible wage deductions that New York employers can make pursuant to New York Labor Law Section 193.  The current version of Section 193, which was amended in 2012, includes a wide range of categories of wage deductions that employers can withhold from employee wages, subject to employee approval.  Such permissible deductions include discounted parking passes, daycare expenses and gym membership dues, among others.  Potentially most useful for employers is their right under the amended Section 193 to recover for overpayments of wages to employees that resulted from mathematical or other clerical errors.

Earlier this year, we wrote in detail about the interplay of Section 193 and an employer’s wholesale failure to pay wages, available here.  While multiple Courts have determined that a total failure to pay does not constitute a violation of Section 193, in any event, New York employers will continue to enjoy the increased flexibility afforded under the amended version of Section 193 through its new effective date of November 6, 2018.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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