Labor & HR Committee Update
September 12, 2012

Staff Contact: Frank Kerbein

Additional Paycheck Deductions Approved

Governor Cuomo gave final approval and on Friday, September 7, 2012 signed legislation, S.7790 /A.10785, which will expand the ability for employees to authorize their employers to make paycheck deductions. It is effective in sixty days.

In addition to the categories of paycheck deductions currently authorized under Section 193 of the state’s Labor Law - for insurance premiums, retirement/benefit plan contributions, contributions to charitable organizations, U.S. Savings bond purchases and union dues – employees would also be allowed to authorize deductions for:

The bill also separately allows for deductions for withholdings related to the repayment of pay advances and the recovery of pay overages, both of which will be subject to (and must wait adoption of) new regulations prepared by the state Labor Department. These new regulations will cover the amount and pace of repayments, employee notice requirements, and will require employers to have a dispute resolution process enabling an employee to dispute or delay repayments.

Along with the expanded allowable deductions, this bill adds new employer administrative requirements as well:

On a positive note, the Administration has expressed interest in working with The Business Council and its members on implementation regulations for pay overages and advances.