BILL NUMBER: S4516
SPONSOR: RAMOS
 
TITLE OF BILL:
An act to amend the labor law, in relation to clarifying that deductions
not be made from employee accounts if such deductions do not constitute
overpayment or are disbursed at an improper time
 
PURPOSE:
Clarifying that deductions from wages are not authorized even if the
result of a clerical error or other mistake by the employer if the wages
were rightfully owed.
 
SUMMARY OF PROVISIONS:
Subdivision c of § 193 of the Labor law § 42-a. is amended to establish
that recovery of wages due to a clerical error by the employer or any
vendor working on behalf of the employer is prohibited if such clerical
error did not result in an overpayment or other inaccuracy in the amount
of wages paid or the time in which wages were dispersed.
 
JUSTIFICATION:
This bill clarifies that deductions shall not be made from employee
accounts if they do not constitute overpayment or are dispersed at an
improper time. This is to prevent employees from being affected in the
situation where a company makes a clerical error harmful in the company
but the employee receives wages they were rightfully owed. As reported
in the Times Union, Cachet clawed back rightfully owed wages because the
money did not come from the employer escrow account as usual but rather
a separate source, since the escrow money was sent directly to MyPayro-
lIHR. Employees should have kept their wages and Cachet received their
money back directly from MyPayrol1HR or insurance if they are so
insured. Note: Cachet is a California company who was a vendor of MyPay-
rolIHR.
 
LEGISLATIVE HISTORY:
2023-24: S4540 (Ramos) Passed the Senate / A9459 (Burdick) Referred to
Labor
2021-22: S1025 (Ramos) Passed the Senate
 
FISCAL IMPACT:
TBD
 
EFFECTIVE DATE:
This act shall take effect immediately

Statutes affected:
S4516: 193 labor law, 193(1) labor law