Authorizes employers to make deductions from an employee's wages if such deduction is authorized by the employee and is for the convenience of the employee.
TITLE OF BILL: An act to amend the labor law, in relation to authorized deductions from wages
PURPOSE OR GENERAL IDEA OF BILL: This legislation authorizes employers to make deductions from an employee's wages if such deduction is authorized by the employee and is for the convenience of the employee.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends paragraph b of subdivision 1 of section 193 of the Labor law to permit deductions from wages when they are expressly authorized by the employee and are for the benefit or convenience of the employee. The authorization cannot be procured by duress or undue influence.
Section 2 states the enactment date.
JUSTIFICATION: Payroll deductions for the benefit of the employee are currently limited to pension or health and welfare benefits, contributions to charitable organizations, payments for U.S. Bonds, or labor union dues or assessments. Payroll deductions are not permitted for services provided by employers for the employee's convenience such as meals in employer dining facilities, uniforms, or prescription drug co-pays at employer operated pharmacies.
This is disadvantageous to both employers and employees. These services are frequently being provided at minimal cost to the employee and for the employee's benefit. Because the employer cannot deduct the fee for these services, they must incur additional expenses for credit card machines, or employees to operate cash registers. These additional cost prevent small businesses from offering valuable services to their employees.
This legislation would allow employers to deduct such services from the employee's paycheck when the service is for the convenience of the employee, the employee has authorized the transaction in writing, and the transaction was not due to fraud, undue influence or duress.
PRIOR LEGISLATIVE HISTORY: This is a new bill.
FISCAL IMPLICATIONS: The fiscal implications are to be determined.
EFFECTIVE DATE: 180th day after becoming law.
STATE OF NEW YORK ________________________________________________________________________ 2837 2011-2012 Regular Sessions IN SENATE February 2, 2011 ___________Introduced by Sen. YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to authorized deductions from wages THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph b of 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: b. are expressly authorized in writing by the employee and are for the benefit OR CONVENIENCE of the employee; provided that such authorization is kept on file on the employer's premises. Such authorized deductions
[shall be limited to]MAY INCLUDE payments for insurance premiums, pension or health and welfare benefits, contributions to charitable organizations, payments for United States bonds, payments for dues or assessments to a labor organization, and similar payments for the bene- fit OR CONVENIENCE of the employee. NO DEDUCTION FROM THE WAGES OF AN EMPLOYEE SHALL BE MADE PURSUANT TO THIS PARAGRAPH, UNLESS THE AUTHORI- ZATION THEREFOR IS MADE KNOWINGLY AND VOLUNTARILY BY THE EMPLOYEE, WITH- OUT ANY UNDUE INFLUENCE OR DURESS BY THE EMPLOYER. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00452-01-1