BILL NUMBER: S8834

SPONSOR: YOUNG
 
TITLE OF BILL:  An act to amend chapter 451 of the laws of 2012,
amending the labor law relating to permitted deductions from wages, in
relation to extending the effectiveness of such provisions

 
PURPOSE OF THE BILL:

The purpose of this bill is to extend the existing provisions in Labor
Law § 193 for two years. Under current law, these provisions will expire
on November 6, 2018 and the law will revert back to a prior version of
Labor Law § 193.

 
SUMMARY OF PROVISIONS:

Section one of the bill would extend the expiration date of Labor Law §
193 to November 6, 2020.

Section two of the bill would make it effective immediately.

              

 
JUSTIFICATION:

Labor Law § 193 sets forth the categories of permissible wage deductions
that may be taken by employers with the consent of employees. This
section also provides for use of wage deductions to recapture overpay-
ments of wages due to clerical or mathematical error and for repayment
of advances on wages paid to employees.

Before the current version of Labor Law § 193 was enacted, allowable
wage deductions were limited to those deductions otherwise permitted by
law (e.g., tax withholdings) or to specific categories of commonly
recognized deductions such as retirement savings, healthcare insurance,
and other traditional benefits that did not include deductions for goods
and services.

Both employers and employees have expressed support for the expanded
list of permissible deductions as it exists today, which includes
deductions for service providers like health clubs, day care centers,
and parking vendors. Extending these changes to the labor law for an
additional two years to permit employees to consent to these additional
types of deductions ensures that the benefits associated with such
voluntary deductions may continue.

 
PRIOR LEGISLATIVE HISTORY:

Labor Law § 193 was first enacted in its current form in 2012 (L.2012,
c.451; Governor's Program Bill  49) and extended once in 2015 (L.2015,
c.386).

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This bill would take effect immediately.