New State Law Expands Scope of Permissible Wage Deductions

In the August 2012 issue of the New York eAuthority, we reported that the New York State Senate and Assembly passed legislation, which had not yet been signed by Governor Andrew Cuomo, amending New York Labor Law § 193. On September 8, 2012, Governor Andrew Cuomo signed the much-anticipated law. The new law, which will take effect on November 7, 2012, and is subject to renewal in three years, benefits both employers and employees by allowing employers to deduct from an employee’s wages for the employee’s preauthorized personal activities (such as gym memberships). The new law also permits employers to recapture overpayments of the employee’s wages as well as repayments for loans or advancements the employer made to such employee. For more information on the new law, click here.