NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9768
SPONSOR: Raga 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.
STATE OF NEW YORK
________________________________________________________________________
9768
IN ASSEMBLY
April 5, 2024
___________
Introduced by M. of A. RAGA -- read once and referred to the Committee
on Labor
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 3 of chapter 451 of the laws of 2012 amending the
2 labor law relating to permitted deductions from wages, as amended by
3 chapter 301 of the laws of 2022, is amended to read as follows:
4 § 3. This act shall take effect on the sixtieth day after it shall
5 have become a law and shall expire and be deemed repealed [12] 14 years
6 after such effective date.
7 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14625-01-4
