Amendments to New York Wage Deduction Law: New Amendments to New York Labor Law Provide Guidance on the Permissible Scope of Wage Deductions

Sullivan & Cromwell LLP - August 23, 2012

The New York State Legislature has passed amendments to the Labor Law that provide greater certainty for employers as to the types of deductions that they may make from employees’ wages. The new law makes clear that it is permissible, with the employee’s prior consent, to make deductions for such items as repayment of salary advances, mistaken overpayment of wages, mass transit or parking passes, and gym membership dues. The amendments will go into effect 60 days after Governor Cuomo signs the bill, which he is expected to do very soon. This memorandum describes the wage deductions enumerated in the amendments and the new notice provisions required of employers to effect deductions.