BILL NUMBER: S9369
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend chapter 451 of the laws of 2012 amending the labor law
relating to permitted deductions from wages, in relation to extending
the effectiveness of such provisions
 
PURPOSE OR GENERAL IDEA OF BILL:
To extend for two years the labor law which allows for certain catego-
ries of permissible wage deductions.
 
SUMMARY OF PROVISIONS:
Section 1 of the bill would extend effectiveness of the provisions of
Chapter 451 of the Laws of 2021, relating to permitted wage deductions,
for two years.
Section 2 would establish the effective date.
 
JUSTIFICATION:
Previously, the law unduly restricted employees from deducting payments
from their paychecks for valuable services provided by the employers.
This is disadvantageous to both employers and employees. The law being
extended would changed these restrictions and allows an employer, with
the employee's consent, to deduct wages from an employee's paycheck to
cover specified goods and services. The law also allow employers to make
arrangements with service providers, including, health clubs, day care
centers, and parking vendors for the benefit of employees who wish to
utilize such services and pay through a wage deduction system. Further,
the law ensures that employees are fully informed of the terms associ-
ated with all voluntary deductions.
Finally, the inadvertent overpayment of wages due to mathematical or
other clerical errors occurs with some frequency. The law allows recap-
ture of overpayments pursuant regulations to be promulgated by the
Commissioner. Similarly, the law provides a regulatory framework in
which employers may give employees advances on wages, allowing employees
to weather financial setbacks or address unexpected expenses. Recogniz-
ing the importance of this law, it should be extended for another two
years.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.
 
EFFECTIVE DATE:
This act would take effect immediately.