senate Bill S7790

Signed By Governor
2011-2012 Legislative Session

Relates to permitted deductions from wages

download bill text pdf

Sponsored By

Archive: Last Bill Status Via A10785 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

do you support this bill?

Actions

view actions (9)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Sep 07, 2012 signed chap.451
Aug 27, 2012 delivered to governor
Jun 21, 2012 returned to assembly
passed senate
3rd reading cal.1427
substituted for s7790
Jun 21, 2012 substituted by a10785
Jun 20, 2012 ordered to third reading cal.1427
Jun 18, 2012 referred to rules

Votes

view votes

Co-Sponsors

S7790 - Bill Details

See Assembly Version of this Bill:
A10785
Law Section:
Labor Law
Laws Affected:
Amd §193, Lab L

S7790 - Bill Texts

view summary

Relates to permitted deductions from wages.

view sponsor memo
BILL NUMBER:S7790

TITLE OF BILL:
An act to amend the labor law, in relation to permitted deductions
from wages; and providing for the repeal of such provisions upon
expiration thereof

PURPOSE:
This bill would amend Labor Law § 193 to: (1) establish additional
categories of permissible wage deductions that may be taken by
employers with the consent of employees; (2) provide for use of wage
deductions to recapture overpayments of wages due to clerical or
mathematical error or for repayment of advances on wages paid to
employees; and (3) enact other provisions with regard to deductions.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Labor Law § 193, subdivision 1 to
permit the following: -Wage deductions related to the repayment of
advances and loans on wages and wage overpayments; and -new
permissible wage deductions, with employee consent, including: -costs
associated with discounted mass transit tickets, passes, or user
cards; -fitness or health club and/or gym membership dues; -cafeteria,
vending machine, and pharmacy purchases made at the employer's place
of business, and gift shops run by hospitals, colleges and
universities; -tuition, room, board and fees for nursery, primary,
secondary and postsecondary education costs; and -daycare, before- and
after-school care expenses.

With regard to the use of wage deductions for the purpose of
recovering overpayments or for repayment of advances of wages, the
bill would require that employers comply with regulations promulgated
by the Commissioner of Labor for this purpose, that must include
provisions governing: the types of payments that will be covered by
this section; the timing, frequency, duration and method of recovery
or repayment; limitations on the periodic amount of such recovery or
repayment; and notice to employees before commencing the recovery or
repayment, including notice of procedures for disputing any
overpayments or delaying the start of recovery or repayment.

Section 2 of the bill would add a new subdivision 2 to Labor Law § 193
to clarify that deductions made in conjunction with employer sponsored
pre-tax contributions are permissible under Labor Law § 193 (1) (a).
It would also renumber Labor Law § 193 subdivision 2 as subdivision 3
and authorize wage deductions permitted or required under a collective
bargaining agreement. It would limit deductions for certain items such
as payments on purchases made at fundraising events, cafeteria,
vending, pharmacy, and covered gift shop purchases, and similar
payments by requiring that the aggregate amount of such purchases
within a pay period not exceed a maximum amount established by the
employer, shall not exceed a maximum limit established by the
employee, and not be permitted when they exceed the lower of these two
limits. An employer would be obligated to provide an employee with
information regarding purchases and a running total of all charges
that would be deducted from the employee's wages on the next payday.

With the exception of certain wage deductions, an employee's consent
to a wage deduction may be revoked in writing at any time. Upon


receipt of an employee's revocation, the employer must cease the wage
deduction as soon as practicable, and, in no event, more than four pay
periods or eight weeks after the consent has been withdrawn, whichever
is sooner. This section of the bill would renumber subdivision 3 of
Section 193 of the Labor Law as subdivision 4 and would amend that
subdivision to clarify that Labor Law § 193 does not limit the
protections available under Article 8 of the Labor Law.

Section 3 provides for the effective date.

EXISTING LAW:
The Labor Law allows employers to make deductions from employees'
wages only when the deductions are otherwise allowed by law (e.g., tax
withholdings) or when they fall within specific categories of commonly
recognized deductions for which employee consent has been given (e.g.,
insurance premiums, retirement contributions, charitable
contributions). Wage deductions are not permitted for the purchase of
goods and services provided by employers for the convenience of the
employee on items such as gym memberships, purchases at cafeterias,
vending machines, and employer operated pharmacies.

STATEMENT IN SUPPORT:
The law unduly restricts employees from deducting payments from their
paychecks for valuable services provided by the employers. This is
disadvantageous to both employers and employees. This bill would
change these restrictions and would allow an employer, with the
employee's consent, to deduct wages from an employee's paycheck to
cover specified goods and services. The bill would also allow
employers to make arrangements with service providers, including,
health clubs, day care centers, and parking vendors for the benefit of
employees who wish to utilize such services and pay through a wage
deduction system. Further, the bill would ensure that employees are
fully informed of the terms associated with all voluntary deductions.

Finally, the inadvertent overpayment of wages due to mathematical or
other clerical errors occurs with some frequency. The bill would allow
recapture of overpayments pursuant regulations to be promulgated by
the Commissioner. Similarly, the bill would provide a regulatory
framework in which employers may give employees advances on wages,
allowing employees to weather financial setbacks or address unexpected
expenses.

LEGISLATIVE HISTORY:
This bill, in a slightly different form, was a Department of Labor
Departmental bill in 2011 when it passed the Assembly (A.8465).

BUDGET IMPLICATIONS:
There are no State fiscal implications.

EFFECTIVE DATE:
This bill would take effect 60-days after enactment and will expire
and be deemed repealed three years after it shall take effect.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7790

                            I N  S E N A T E

                              June 18, 2012
                               ___________

Introduced  by  Sen. YOUNG -- (at request of the Governor) -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Rules

AN ACT to amend the labor law, in relation to permitted deductions  from
  wages; and providing for the repeal of such provisions upon expiration
  thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 193 of the labor law, as added  by
chapter 548 of the laws of 1966, is amended to read as follows:
  1. No employer shall make any deduction from the wages of an employee,
except deductions which:
  a.  are  made in accordance with the provisions of any law or any rule
or regulation issued by any governmental  agency  INCLUDING  REGULATIONS
PROMULGATED UNDER PARAGRAPH C AND PARAGRAPH D OF THIS SUBDIVISION; or
  b. are expressly authorized in writing by the employee and are for the
benefit  of  the employee[;], provided that such authorization is VOLUN-
TARY AND ONLY GIVEN FOLLOWING RECEIPT BY THE EMPLOYEE OF WRITTEN  NOTICE
OF  ALL  TERMS AND CONDITIONS OF THE PAYMENT AND/OR ITS BENEFITS AND THE
DETAILS OF THE MANNER IN WHICH DEDUCTIONS WILL BE MADE.  WHENEVER  THERE
IS  A  SUBSTANTIAL  CHANGE  IN  THE  TERMS OR CONDITIONS OF THE PAYMENT,
INCLUDING BUT NOT LIMITED TO, ANY CHANGE IN THE AMOUNT OF THE DEDUCTION,
OR A SUBSTANTIAL CHANGE IN THE BENEFITS OF THE DEDUCTION OR THE  DETAILS
IN  THE MANNER IN WHICH DEDUCTIONS SHALL BE MADE, THE EMPLOYER SHALL, AS
SOON AS PRACTICABLE, BUT IN EACH CASE BEFORE ANY INCREASED DEDUCTION  IS
MADE  ON  THE EMPLOYEE'S BEHALF, NOTIFY THE EMPLOYEE PRIOR TO THE IMPLE-
MENTATION OF THE CHANGE.  SUCH AUTHORIZATION SHALL BE kept  on  file  on
the  employer's  premises  FOR  THE  PERIOD DURING WHICH THE EMPLOYEE IS
EMPLOYED BY THE EMPLOYER AND FOR SIX YEARS AFTER SUCH  EMPLOYMENT  ENDS.
NOTWITHSTANDING  THE  FOREGOING,  EMPLOYEE  AUTHORIZATION FOR DEDUCTIONS
UNDER THIS SECTION MAY ALSO BE PROVIDED TO THE EMPLOYER PURSUANT TO  THE
TERMS  OF  A COLLECTIVE BARGAINING AGREEMENT. Such authorized deductions
shall be limited to payments for:
  (I) insurance premiums[,] AND PREPAID LEGAL PLANS;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12164-01-2

S. 7790                             2

  (II) pension or health and welfare benefits[,];
  (III) contributions to A BONA FIDE charitable [organizations, payments
for] ORGANIZATION;
  (IV)  PURCHASES  MADE  AT  EVENTS  SPONSORED BY A BONA FIDE CHARITABLE
ORGANIZATION AFFILIATED WITH THE EMPLOYER WHERE AT LEAST TWENTY  PERCENT
OF  THE  PROFITS  FROM  SUCH  EVENT ARE BEING CONTRIBUTED TO A BONA FIDE
CHARITABLE ORGANIZATION;
  (V) United States bonds[, payments for];
  (VI) dues or assessments to a labor organization[,];
  (VII) DISCOUNTED PARKING OR DISCOUNTED  PASSES,  TOKENS,  FARE  CARDS,
VOUCHERS, OR OTHER ITEMS THAT ENTITLE THE EMPLOYEE TO USE MASS TRANSIT;
  (VIII) FITNESS CENTER, HEALTH CLUB, AND/OR GYM MEMBERSHIP DUES;
  (IX)  CAFETERIA  AND  VENDING MACHINE PURCHASES MADE AT THE EMPLOYER'S
PLACE OF BUSINESS AND PURCHASES MADE  AT  GIFT  SHOPS  OPERATED  BY  THE
EMPLOYER, WHERE THE EMPLOYER IS A HOSPITAL, COLLEGE, OR UNIVERSITY;
  (X) PHARMACY PURCHASES MADE AT THE EMPLOYER'S PLACE OF BUSINESS;
  (XI)  TUITION, ROOM, BOARD, AND FEES FOR PRE-SCHOOL, NURSERY, PRIMARY,
SECONDARY, AND/OR POST-SECONDARY EDUCATIONAL INSTITUTIONS;
  (XII) DAY CARE, BEFORE-SCHOOL AND AFTER-SCHOOL CARE EXPENSES;
  (XIII) PAYMENTS FOR HOUSING PROVIDED AT NO MORE THAN MARKET  RATES  BY
NON-PROFIT HOSPITALS OR AFFILIATES THEREOF; and
  (XIV) similar payments for the benefit of the employee.
  C. ARE RELATED TO RECOVERY OF AN OVERPAYMENT OF WAGES WHERE SUCH OVER-
PAYMENT  IS DUE TO A MATHEMATICAL OR OTHER CLERICAL ERROR BY THE EMPLOY-
ER. IN MAKING SUCH RECOVERIES, THE  EMPLOYER  SHALL  COMPLY  WITH  REGU-
LATIONS   PROMULGATED  BY  THE  COMMISSIONER  FOR  THIS  PURPOSE,  WHICH
REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, PROVISIONS  GOVERNING:
THE  SIZE  OF  OVERPAYMENTS  THAT  MAY  BE  COVERED BY THIS SECTION; THE
TIMING, FREQUENCY, DURATION, AND METHOD OF SUCH RECOVERY; LIMITATIONS ON
THE PERIODIC AMOUNT OF SUCH  RECOVERY;  A  REQUIREMENT  THAT  NOTICE  BE
PROVIDED  TO  THE EMPLOYEE PRIOR TO THE COMMENCEMENT OF SUCH RECOVERY; A
REQUIREMENT THAT THE EMPLOYER IMPLEMENT A PROCEDURE  FOR  DISPUTING  THE
AMOUNT  OF  SUCH  OVERPAYMENT  OR  SEEKING TO DELAY COMMENCEMENT OF SUCH
RECOVERY; THE TERMS AND CONTENT OF SUCH A PROCEDURE  AND  A  REQUIREMENT
THAT NOTICE OF THE PROCEDURE FOR DISPUTING THE OVERPAYMENT OR SEEKING TO
DELAY COMMENCEMENT OF SUCH RECOVERY BE PROVIDED TO THE EMPLOYEE PRIOR TO
THE COMMENCEMENT OF SUCH RECOVERY.
  D.  REPAYMENT  OF  ADVANCES OF SALARY OR WAGES MADE BY THE EMPLOYER TO
THE EMPLOYEE. DEDUCTIONS TO COVER  SUCH  REPAYMENTS  SHALL  BE  MADE  IN
ACCORDANCE  WITH  REGULATIONS  PROMULGATED  BY THE COMMISSIONER FOR THIS
PURPOSE, WHICH  REGULATIONS  SHALL  INCLUDE,  BUT  NOT  BE  LIMITED  TO,
PROVISIONS  GOVERNING:  THE  TIMING,  FREQUENCY, DURATION, AND METHOD OF
SUCH REPAYMENT; LIMITATIONS ON THE PERIODIC AMOUNT OF SUCH REPAYMENT;  A
REQUIREMENT  THAT  NOTICE  BE  PROVIDED  TO  THE  EMPLOYEE  PRIOR TO THE
COMMENCEMENT OF SUCH REPAYMENT; A REQUIREMENT THAT THE  EMPLOYER  IMPLE-
MENT  A  PROCEDURE FOR DISPUTING THE AMOUNT OF SUCH REPAYMENT OR SEEKING
TO DELAY COMMENCEMENT OF SUCH REPAYMENT; THE TERMS AND CONTENT OF SUCH A
PROCEDURE AND A REQUIREMENT THAT NOTICE OF THE PROCEDURE  FOR  DISPUTING
THE  REPAYMENT  OR  SEEKING  TO  DELAY COMMENCEMENT OF SUCH REPAYMENT BE
PROVIDED TO THE EMPLOYEE AT THE TIME THE LOAN IS MADE.
  S 2. Subdivisions 2 and 3 of section 193 of the labor law, subdivision
2 as added and subdivision 3 as renumbered by chapter 160 of the laws of
1974 and subdivision 3 as added by chapter 548 of the laws of 1966,  are
amended to read as follows:
  2.  DEDUCTIONS  MADE IN CONJUNCTION WITH AN EMPLOYER SPONSORED PRE-TAX
CONTRIBUTION PLAN APPROVED BY THE IRS OR OTHER LOCAL  TAXING  AUTHORITY,

S. 7790                             3

INCLUDING  THOSE  FALLING WITHIN ONE OR MORE OF THE CATEGORIES SET FORTH
IN PARAGRAPH B OF SUBDIVISION ONE OF THIS SECTION, SHALL  BE  CONSIDERED
TO  HAVE  BEEN MADE IN ACCORDANCE WITH PARAGRAPH A OF SUBDIVISION ONE OF
THIS SECTION.
  3.  A.  No employer shall make any charge against wages, or require an
employee to make any payment by separate transaction unless such  charge
or  payment  is permitted as a deduction from wages under the provisions
of subdivision one of this section OR IS PERMITTED OR REQUIRED UNDER ANY
PROVISION OF A CURRENT COLLECTIVE BARGAINING AGREEMENT.
  B. NOTWITHSTANDING THE EXISTENCE OF  EMPLOYEE  AUTHORIZATION  TO  MAKE
DEDUCTIONS IN ACCORDANCE WITH SUBPARAGRAPHS (IV), (IX), AND (X) OF PARA-
GRAPH  B OF SUBDIVISION ONE OF THIS SECTION AND DEDUCTIONS DETERMINED BY
THE COMMISSIONER TO BE SIMILAR TO SUCH  DEDUCTIONS  IN  ACCORDANCE  WITH
SUBPARAGRAPH  (XIV)  OF  PARAGRAPH B OF SUBDIVISION ONE OF THIS SECTION,
THE TOTAL AGGREGATE AMOUNT OF SUCH DEDUCTIONS FOR EACH PAY PERIOD  SHALL
BE SUBJECT TO THE FOLLOWING LIMITATIONS: (I) SUCH AGGREGATE AMOUNT SHALL
NOT  EXCEED  A  MAXIMUM  AGGREGATE LIMIT ESTABLISHED BY THE EMPLOYER FOR
EACH PAY PERIOD; (II) SUCH AGGREGATE AMOUNT SHALL NOT EXCEED  A  MAXIMUM
AGGREGATE  LIMIT ESTABLISHED BY THE EMPLOYEE, WHICH LIMIT MAY BE FOR ANY
AMOUNT (IN TEN DOLLAR INCREMENTS) UP TO THE MAXIMUM  AMOUNT  ESTABLISHED
BY  THE  EMPLOYER  UNDER  SUBPARAGRAPH  (I) OF THIS PARAGRAPH; (III) THE
EMPLOYER SHALL NOT PERMIT  ANY  PURCHASES  WITHIN  THESE  CATEGORIES  OF
DEDUCTION BY THE EMPLOYEE THAT EXCEED THE AGGREGATE LIMIT ESTABLISHED BY
THE EMPLOYEE OR, IF NO LIMIT HAS BEEN SET BY THE EMPLOYEE, THE LIMIT SET
BY  THE  EMPLOYER;  (IV) THE EMPLOYEE SHALL HAVE ACCESS WITHIN THE WORK-
PLACE TO CURRENT ACCOUNT INFORMATION DETAILING  INDIVIDUAL  EXPENDITURES
WITHIN  THESE  CATEGORIES OF DEDUCTION AND A RUNNING TOTAL OF THE AMOUNT
THAT WILL BE DEDUCTED FROM THE EMPLOYEE'S PAY DURING THE NEXT APPLICABLE
PAY PERIOD.  INFORMATION SHALL BE AVAILABLE IN PRINTED FORM  OR  CAPABLE
OF  BEING  PRINTED  SHOULD  THE  EMPLOYEE  WISH  TO OBTAIN A LISTING. NO
EMPLOYEE MAY BE CHARGED ANY FEE, DIRECTLY OR INDIRECTLY, FOR ACCESS  TO,
OR PRINTING OF, SUCH ACCOUNT INFORMATION.
  C.  WITH  THE EXCEPTION OF WAGE DEDUCTIONS REQUIRED OR AUTHORIZED IN A
CURRENT EXISTING COLLECTIVE BARGAINING AGREEMENT, AN EMPLOYEE'S AUTHORI-
ZATION FOR ANY AND ALL WAGE DEDUCTIONS MAY BE REVOKED IN WRITING AT  ANY
TIME.  THE EMPLOYER MUST CEASE THE WAGE DEDUCTION FOR WHICH THE EMPLOYEE
HAS REVOKED AUTHORIZATION AS SOON AS PRACTICABLE, AND, IN NO EVENT  MORE
THAN  FOUR  PAY  PERIODS OR EIGHT WEEKS AFTER THE AUTHORIZATION HAS BEEN
WITHDRAWN, WHICHEVER IS SOONER.
  [3.] 4. Nothing in this section shall justify noncompliance with arti-
cle three-A of the personal property law relating to assignment of earn-
ings, [nor] WITH SECTION TWO HUNDRED TWENTY-ONE OF THIS CHAPTER RELATING
TO COMPANY STORES OR with any other law applicable  to  deductions  from
wages.
  S  3.  This  act  shall take effect on the sixtieth day after it shall
have become a law and shall expire and be deemed repealed 3 years  after
such effective date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.