On September 8, 2012, Governor Andrew Cuomo signed legislation amending section 193 of the New York Labor Law, which prohibited all but a narrow category of deductions from employee wages. The amendment expands the scope of permissible deductions, including permitting employers to recover wage overpayments as well as employee loan repayments. In addition, the amendment to the New York Labor Law permits wage deductions for purchases made at certain charitable events; discounted parking and transit costs; gym membership dues; cafeteria, vending machine and pharmacy purchases; tuition and certain school-related expenses; and payments for certain housing provided by non-profit hospitals.
The permitted wage deductions are still for the benefit of the employee, with the exception, perhaps, of those permitting the recovery of wage overpayments and loan repayments.
The amendment to the New York Labor Law takes effect on November 7, 2012.
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