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| Legal AnalysisDeductions From PayNew York |
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PERMITTED DEDUCTIONS
New York law allows employers to make deductions
that are required by law or a rule or regulation of a governmental
agency. 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 (NY Lab. Law Sec.
193).
WRITTEN AUTHORIZATION REQUIRED
Employers may make deductions from an
employee's wages with the express written consent of the
employee for the following (NY Lab. Law Sec. 193):
•
Payments for insurance premiums
•
Payments for contributions to pensions, or health and welfare
benefit plans
•
Contributions to charitable organizations
•
Payments for the purchase of U.S. Savings Bonds
•
Payments for dues or assessments owed to a labor organization
Employers may also make deductions that are
expressly authorized in writing by the employee for
"similar payments for the benefit of the
employee," provided that deductions for any such items
do not exceed 10 percent of the employee's gross wages for
the pay period (NY Rules and Regulations Tit. 12 Sec. 195.1).
CHILD SUPPORT/ALIMONY
Deductions must be made for child support and
alimony payments when ordered by a court. For additional
information, see the national and state
Garnishment
sections.
ASSIGNMENT OF WAGES
Deductions may be made for an assignment of wages.
An assignment of wages is an agreement between an employee and one
of his or her creditors, under which the employer is required to
deduct a certain portion of the employee's wages from each
paycheck for repayment of a debt. A wage assignment differs from a
garnishment in that garnishment is an involuntary proceeding begun
by a creditor because an employee has not paid his or her debts
voluntarily. For more information, see the national and state
Garnishment
sections.
PROHIBITED DEDUCTIONS
Employers generally may not require applicants or
employees to pay the cost of medical exams and health
certificates.
REQUIRED STATEMENT
With each payment of wages, the employer must
furnish a statement listing gross wages, deductions, and net wages
and, on request, must furnish a statement of how they were computed
(NY Lab. Law Sec. 195).
Additional Information:
For additional information, employers should
contact:
New York State Department of Labor W. Averell
Harriman State Office Campus, Building 12Albany, NY 12240
518-457-9000
http://www.labor.state.ny.us
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