Senate Bill S2837

                                BILL NUMBER:S2837

TITLE OF BILL:
An act
to amend the labor law, in relation to authorized deductions from wages

PURPOSE OR GENERAL IDEA OF BILL:
This legislation authorizes employers to make deductions from an
employee's wages if such deduction is authorized by the employee and
is for the convenience of the employee.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends paragraph b of subdivision 1 of section 193 of the
Labor law to permit deductions from wages when they are expressly
authorized by the employee and are for the benefit or convenience of
the employee. The authorization cannot be procured by duress or undue
influence.

Section 2 states the enactment date.

JUSTIFICATION:
Payroll deductions for the benefit of the employee are currently
limited to pension or health and welfare benefits, contributions to
charitable organizations, payments for U.S. Bonds, or labor union
dues or assessments. Payroll deductions are not permitted for
services provided by employers for the employee's convenience such as
              

meals in employer dining facilities, uniforms, or prescription drug
co-pays at employer operated pharmacies.

This is disadvantageous to both employers and employees. These
services are frequently being provided at minimal cost to the
employee and for the employee's benefit. Because the employer cannot
deduct the fee for these services, they must incur additional
expenses for credit card machines, or employees to operate cash
registers. These additional cost prevent small businesses from
offering valuable services to their employees.

This legislation would allow employers to deduct such services from
the employee's paycheck when the service is for the convenience of
the employee, the employee has authorized the transaction in writing,
and the transaction was not due to fraud, undue influence or duress.

PRIOR LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:
The fiscal implications are to be determined.

EFFECTIVE DATE:
180th day after becoming law.