ALBANY, N.Y. – New York Gov. Andrew Cuomo has signed a new law to authorize employers to deduct from wages a worker’s payments for items like gym dues, daycare and cafeteria purchases.

The law, set to take effect in 60 days and expire three years later, amends state labor law that already allows withholdings or deductions for taxes and items like insurance and retirement.

It also authorizes employers to use wage deductions to recapture overpayments to workers due to clerical or mathematical error or advances.

According to Assembly sponsors, who included Joseph Morelle, Peter Rivera and George Amedore, the old law “unduly restricts” employees from using paycheck deductions for valuable employer goods and services.

Those wage deductions will require worker consent and notifications.

The sponsors say inadvertent wage overpayment “occurs with some frequency.”

Source: The Wall Street Journal


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