S T A T E O F N E W Y O R K
________________________________________________________________________
8465
2011-2012 Regular Sessions
I N A S S E M B L Y
June 17, 2011
___________
Introduced by M. of A. MORELLE, WRIGHT -- (at request of the Department
of Labor) -- read once and referred to the Committee on Labor
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:
1 Section 1. Subdivision 1 of section 193 of the labor law, as added by
2 chapter 548 of the laws of 1966, is amended to read as follows:
3 1. No employer shall make any deduction from the wages of an employee,
4 except deductions which:
5 a. are made in accordance with the provisions of any law or any rule
6 or regulation issued by any governmental agency INCLUDING REGULATIONS
7 PROMULGATED UNDER PARAGRAPH C AND PARAGRAPH D OF THIS SUBDIVISION; or
8 b. are expressly authorized in writing by the employee and are for the
9 benefit of the employee[;], provided that such authorization is VOLUN-
10 TARY AND ONLY GIVEN FOLLOWING RECEIPT BY THE EMPLOYEE OF WRITTEN NOTICE
11 OF ALL TERMS AND CONDITIONS OF THE PAYMENT AND/OR ITS BENEFITS AND THE
12 DETAILS OF THE MANNER IN WHICH DEDUCTIONS WILL BE MADE. WHENEVER THERE
13 IS A SUBSTANTIAL CHANGE IN THE TERMS OR CONDITIONS OF THE PAYMENT,
14 INCLUDING BUT NOT LIMITED TO, ANY CHANGE IN THE AMOUNT OF THE DEDUCTION,
15 OR A SUBSTANTIAL CHANGE IN THE BENEFITS OF THE DEDUCTION OR THE DETAILS
16 IN THE MANNER IN WHICH DEDUCTIONS SHALL BE MADE, THE EMPLOYER SHALL, AS
17 SOON AS PRACTICABLE, BUT IN EACH CASE BEFORE ANY INCREASED DEDUCTION IS
18 MADE ON THE EMPLOYEE'S BEHALF, NOTIFY THE EMPLOYEE PRIOR TO THE IMPLE-
19 MENTATION OF THE CHANGE. SUCH AUTHORIZATION SHALL BE kept on file on
20 the employer's premises FOR THE PERIOD DURING WHICH THE EMPLOYEE IS
21 EMPLOYED BY THE EMPLOYER AND FOR SIX YEARS AFTER SUCH EMPLOYMENT ENDS.
22 NOTWITHSTANDING THE FOREGOING, EMPLOYEE AUTHORIZATION FOR DEDUCTIONS
23 UNDER THIS SECTION MAY ALSO BE PROVIDED TO THE EMPLOYER PURSUANT TO THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13171-01-1
A. 8465 2
1 TERMS OF A COLLECTIVE BARGAINING AGREEMENT. Such authorized deductions
2 shall be limited to payments for:
3 (I) insurance premiums[,] AND PREPAID LEGAL PLANS;
4 (II) pension or health and welfare benefits[,];
5 (III) contributions to A BONA FIDE charitable [organizations, payments
6 for] ORGANIZATION;
7 (IV) PURCHASES MADE AT EVENTS SPONSORED BY A BONA FIDE CHARITABLE
8 ORGANIZATION AFFILIATED WITH THE EMPLOYER WHERE AT LEAST TWENTY PERCENT
9 OF THE PROFITS FROM SUCH EVENT ARE BEING CONTRIBUTED TO A BONA FIDE
10 CHARITABLE ORGANIZATION;
11 (V) United States bonds[, payments for];
12 (VI) dues or assessments to a labor organization[,];
13 (VII) DISCOUNTED PARKING MADE AVAILABLE TO EMPLOYEES ON PREMISES NOT
14 OWNED OR OPERATED BY THE EMPLOYER OR DISCOUNTED PASSES, TOKENS, FARE
15 CARDS, VOUCHERS, OR OTHER ITEMS THAT ENTITLE THE EMPLOYEE TO USE MASS
16 TRANSIT, PROVIDED, HOWEVER, THAT NOTWITHSTANDING THE FOREGOING, EMPLOY-
17 ERS MAY DEDUCT FROM EMPLOYEE WAGES CHARGES ASSOCIATED WITH PARKING ON
18 THE EMPLOYER'S PREMISES PROVIDED THAT SUCH EMPLOYER HAD BEEN CHARGING
19 EMPLOYEES FOR PARKING ON OR BEFORE THE FIFTEENTH DAY OF MAY, TWO THOU-
20 SAND ELEVEN;
21 (VIII) FITNESS CENTER, HEALTH CLUB, AND/OR GYM MEMBERSHIP DUES;
22 (IX) CAFETERIA AND VENDING MACHINE PURCHASES MADE AT THE EMPLOYER'S
23 PLACE OF BUSINESS AND PURCHASES MADE AT GIFT SHOPS OPERATED BY HOSPI-
24 TALS, COLLEGES, OR UNIVERSITIES;
25 (X) PHARMACY PURCHASES MADE AT THE EMPLOYER'S PLACE OF BUSINESS;
26 (XI) TUITION, ROOM, BOARD, AND FEES FOR PRE-SCHOOL, NURSERY, PRIMARY,
27 SECONDARY, AND/OR POST-SECONDARY EDUCATIONAL INSTITUTIONS;
28 (XII) DAY CARE, BEFORE-SCHOOL AND AFTER-SCHOOL CARE EXPENSES;
29 (XIII) PAYMENTS FOR HOUSING PROVIDED AT NO MORE THAN MARKET RATES BY
30 NON-PROFIT HOSPITALS OR AFFILIATES THEREOF; AND
31 (XIV) similar payments for the benefit of the employee.
32 C. ARE RELATED TO RECOVERY OF AN OVERPAYMENT OF WAGES WHERE SUCH OVER-
33 PAYMENT IS DUE TO A MATHEMATICAL OR OTHER CLERICAL ERROR BY THE EMPLOY-
34 ER. IN MAKING SUCH RECOVERIES, THE EMPLOYER SHALL COMPLY WITH REGU-
35 LATIONS PROMULGATED BY THE COMMISSIONER FOR THIS PURPOSE, WHICH
36 REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, PROVISIONS GOVERNING:
37 THE SIZE OF OVERPAYMENTS THAT MAY BE COVERED BY THIS SECTION; THE
38 TIMING, FREQUENCY, DURATION, AND METHOD OF SUCH RECOVERY; LIMITATIONS ON
39 THE PERIODIC AMOUNT OF SUCH RECOVERY; A REQUIREMENT THAT NOTICE BE
40 PROVIDED TO THE EMPLOYEE PRIOR TO THE COMMENCEMENT OF SUCH RECOVERY; A
41 REQUIREMENT THAT THE EMPLOYER IMPLEMENT A PROCEDURE FOR DISPUTING THE
42 AMOUNT OF SUCH OVERPAYMENT OR SEEKING TO DELAY COMMENCEMENT OF SUCH
43 RECOVERY, THE TERMS AND CONTENT OF WHICH SHALL BE ACCEPTABLE TO THE
44 COMMISSIONER; AND A REQUIREMENT THAT NOTICE OF THE PROCEDURE FOR DISPUT-
45 ING THE OVERPAYMENT OR SEEKING TO DELAY COMMENCEMENT OF SUCH RECOVERY BE
46 PROVIDED TO THE EMPLOYEE PRIOR TO THE COMMENCEMENT OF SUCH RECOVERY.
47 D. REPAYMENT OF ADVANCES OF SALARY OR WAGES MADE BY THE EMPLOYER TO
48 THE EMPLOYEE. DEDUCTIONS TO COVER SUCH REPAYMENTS SHALL BE MADE IN
49 ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSIONER FOR THIS
50 PURPOSE, WHICH REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO,
51 PROVISIONS GOVERNING: THE TIMING, FREQUENCY, DURATION, AND METHOD OF
52 SUCH REPAYMENT; LIMITATIONS ON THE PERIODIC AMOUNT OF SUCH REPAYMENT; A
53 REQUIREMENT THAT NOTICE BE PROVIDED TO THE EMPLOYEE PRIOR TO THE
54 COMMENCEMENT OF SUCH REPAYMENT; A REQUIREMENT THAT THE EMPLOYER IMPLE-
55 MENT A PROCEDURE FOR DISPUTING THE AMOUNT OF SUCH REPAYMENT OR SEEKING
56 TO DELAY COMMENCEMENT OF SUCH REPAYMENT, THE TERMS AND CONTENT OF WHICH
A. 8465 3
1 SHALL BE ACCEPTABLE TO THE COMMISSIONER; AND A REQUIREMENT THAT NOTICE
2 OF THE PROCEDURE FOR DISPUTING THE REPAYMENT OR SEEKING TO DELAY
3 COMMENCEMENT OF SUCH REPAYMENT BE PROVIDED TO THE EMPLOYEE AT THE TIME
4 THE LOAN IS MADE.
5 S 2. Subdivisions 2 and 3 of section 193 of the labor law, subdivision
6 2 as added and subdivision 3 as renumbered by chapter 160 of the laws of
7 1974 and subdivision 3 as added by chapter 548 of the laws of 1966, are
8 amended to read as follows:
9 2. DEDUCTIONS MADE IN CONJUNCTION WITH AN EMPLOYER SPONSORED PRE-TAX
10 CONTRIBUTION PLAN APPROVED BY THE IRS OR OTHER LOCAL TAXING AUTHORITY,
11 INCLUDING THOSE FALLING WITHIN ONE OR MORE OF THE CATEGORIES SET FORTH
12 IN PARAGRAPH B OF SUBDIVISION ONE OF THIS SECTION, SHALL BE CONSIDERED
13 TO HAVE BEEN MADE IN ACCORDANCE WITH PARAGRAPH A OF SUBDIVISION ONE OF
14 THIS SECTION.
15 3. A. No employer shall make any charge against wages, or require an
16 employee to make any payment by separate transaction unless such charge
17 or payment is permitted as a deduction from wages under the provisions
18 of subdivision one of this section OR IS PERMITTED OR REQUIRED UNDER ANY
19 PROVISION OF A CURRENT COLLECTIVE BARGAINING AGREEMENT.
20 B. NOTWITHSTANDING THE EXISTENCE OF EMPLOYEE AUTHORIZATION TO MAKE
21 DEDUCTIONS IN ACCORDANCE WITH SUBPARAGRAPHS (IV), (IX), AND (X) OF PARA-
22 GRAPH B OF SUBDIVISION ONE OF THIS SECTION AND DEDUCTIONS DETERMINED BY
23 THE COMMISSIONER TO BE SIMILAR TO SUCH DEDUCTIONS IN ACCORDANCE WITH
24 SUBPARAGRAPH (XIV) OF PARAGRAPH B OF SUBDIVISION ONE OF THIS SECTION,
25 THE TOTAL AGGREGATE AMOUNT OF SUCH DEDUCTIONS FOR EACH PAY PERIOD SHALL
26 BE SUBJECT TO THE FOLLOWING LIMITATIONS: (I) SUCH AGGREGATE AMOUNT SHALL
27 NOT EXCEED A MAXIMUM AGGREGATE LIMIT ESTABLISHED BY THE EMPLOYER FOR
28 EACH PAY PERIOD; (II) SUCH AGGREGATE AMOUNT SHALL NOT EXCEED A MAXIMUM
29 AGGREGATE LIMIT ESTABLISHED BY THE EMPLOYEE, WHICH LIMIT MAY BE FOR ANY
30 AMOUNT (IN TEN DOLLAR INCREMENTS) UP TO THE MAXIMUM AMOUNT ESTABLISHED
31 BY THE EMPLOYER UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH; (III) THE
32 EMPLOYER SHALL NOT PERMIT ANY PURCHASES WITHIN THESE CATEGORIES OF
33 DEDUCTION BY THE EMPLOYEE THAT EXCEED THE AGGREGATE LIMIT ESTABLISHED BY
34 THE EMPLOYEE OR, IF NO LIMIT HAS BEEN SET BY THE EMPLOYEE, THE LIMIT SET
35 BY THE EMPLOYER; (IV) THE EMPLOYEE SHALL HAVE ACCESS WITHIN THE WORK-
36 PLACE TO CURRENT ACCOUNT INFORMATION DETAILING INDIVIDUAL EXPENDITURES
37 WITHIN THESE CATEGORIES OF DEDUCTION AND A RUNNING TOTAL OF THE AMOUNT
38 THAT WILL BE DEDUCTED FROM THE EMPLOYEE'S PAY DURING THE NEXT APPLICABLE
39 PAY PERIOD. INFORMATION SHALL BE AVAILABLE IN PRINTED FORM OR CAPABLE
40 OF BEING PRINTED SHOULD THE EMPLOYEE WISH TO OBTAIN A LISTING. NO
41 EMPLOYEE MAY BE CHARGED ANY FEE, DIRECTLY OR INDIRECTLY, FOR ACCESS TO,
42 OR PRINTING OF, SUCH ACCOUNT INFORMATION.
43 C. WITH THE EXCEPTION OF WAGE DEDUCTIONS REQUIRED OR AUTHORIZED IN A
44 CURRENT EXISTING COLLECTIVE BARGAINING AGREEMENT, AN EMPLOYEE'S AUTHORI-
45 ZATION FOR ANY AND ALL WAGE DEDUCTIONS MAY BE REVOKED IN WRITING AT ANY
46 TIME. THE EMPLOYER MUST CEASE THE WAGE DEDUCTION FOR WHICH THE EMPLOYEE
47 HAS REVOKED AUTHORIZATION AS SOON AS PRACTICABLE, AND, IN NO EVENT MORE
48 THAN FOUR PAY PERIODS OR EIGHT WEEKS AFTER THE AUTHORIZATION HAS BEEN
49 WITHDRAWN, WHICHEVER IS SOONER.
50 [3.] 4. Nothing in this section shall justify noncompliance with arti-
51 cle three-A of the personal property law relating to assignment of earn-
52 ings, [nor] WITH SECTION TWO HUNDRED TWENTY-ONE OF THIS CHAPTER RELATING
53 TO COMPANY STORES OR with any other law applicable to deductions from
54 wages.
A. 8465 4
1 S 3. This act shall take effect on the sixtieth day after it shall
2 have become a law and shall expire and be deemed repealed 3 years after
3 such effective date.