New York Deductions From Pay laws & compensation compliance analysis

New York Deductions From Pay: What you need to know

Employers may make any deductions from wages that are in accordance with laws, rules, or regulations issued by any governmental agency. Such deductions include, but are not limited to, deductions for recovery of overpayments; for repayment of salary advances, and for pretax contribution plans approved by the Internal Revenue Service ; wage garnishments and levies for child support and taxes, which may be involuntary as long as they are made in accordance with the statutes and regulations authorizing them. In addition, deductions expressly authorized in writing by the employee and for the benefit of the employee are allowed if the employee's authorization is kept on file. Those deductions are limited to the ones that are specifically listed in the statute, and to similar payments for the benefit of the employee (NY Labor Law Sec. 193).
Authorized. A deduction is considered authorized if it is agreed to in a collective bargaining agreement between the representative of the employee and the employer, or by a written agreement between the employer and the employees that is expressed, written, voluntary, and informed. An authorization is informed when the employee is provided with written notice of all terms and conditions of the deduction, its benefit, and the details of the manner in which deductions will be made. The written notice must be provided before the execution of the initial authorization and before a deduction is made, there is any change in the amount of a deduction, or there is a substantial change in the benefits of a deduction. A single, written authorization containing more than one deduction is allowed as long as all the required information is provided.
Benefit of the ...

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