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.