Labor & HR Committee Update
June 3, 2013

Staff Contact: Frank Kerbein

Proposed Wage Deduction Regulations

The New York State Department of Labor has proposed its regulations implementing the 2012 wage deduction statute (Chapter 451, S.7790/A.10785). Their rulemaking was published in the May 22, 2013 State Register, and is available here; the regulatory impact statement is available here beginning on page 6.

In part, the proposed rules are intended to clarify what is an allowable and non-allowable deduction. The statute also requires regulations before payroll deductions could be made for the recovery of pay overages or the repayment of pay advances. We would ask you to pay particular attention to this. Our main concerns with the 2012 legislation was its exclusion of previously common-place categories of deductions, and the questionable need for a new regulations for certain categories of withholdings.

We will be preparing and submitting comments on this proposal, and welcome input from Business Council members. Comments are due July 6, 2013 so please send anything you might have by the third week of June.