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On Oct. 26, 2015, New York Gov. Andrew Cuomo signed State Assembly bill A07594, extending the expiration period of 2012 amendments to New York Labor Law Section 193, which had permitted employers to make deductions from employee wages in circumstances otherwise deemed impermissible by the New York State Department of Labor. Under this bill, the expiration period is extended from three years after the date that the amendments went into effect, which would be Nov. 6, 2015, to six years after the effective date of the amendments, which is Nov. 6, 2018. As a result, Section 193 will stay in effect until Nov, 6, 2018, permitting employer to continue to make deductions from wages in a broader range of circumstances.
In September of 2012, Gov. Cuomo signed a law amending section 193. That amendment expanded an existing enumerated list of permissible wage deductions, including deductions to recover wage overpayments and for repayments of employer loans. Employers recovering overpayments must still comply with other provisions of the New York Labor Law governing the timing, frequency, duration and total amount of deductions. The amendment also cover purchases made at certain charitable events; discounted parking or mass transit items; gym membership dues; cafeteria, vending machine, and pharmacy purchases made at the employer’s place of business; tuition, room, and board for certain educational institutions; and daycare expenses.
Under the extended expiration date for the above amendments to Section 193, employers will not have to revise their deductions policies for another three years. Employers should note the new expiration date for the expanded enumerated deductions in the event that the amendments are not renewed thereafter.
Brian J. Gershengorn and A. Sonu Ray are attorneys in the New York City office of Ogletree Deakins. Republished with permission. © 2015 Ogletree Deakins. All rights reserved.
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