- Discounted mass transit tickets;
- Fitness, health club and gym membership dues;
- Cafeteria, vending machine and pharmacy purchases made at the employer’s place of business, and gift shops run by hospitals, colleges and universities;
- Tuition, room and board and fees for nursery, primary, secondary and post-secondary education costs; and
- Daycare, before-school and after-school care expenses.
On September 7, 2012, Gov. Andrew M. Cuomo signed legislation expanding the scope of permissible employee wage deductions in New York. The amendments increase employers’ ability to make wage deductions. The new law takes effect on November 6, 2012, however it contains a sunset provision and will expire after three years unless further legislative action is taken to extend it. In adopting the legislation, Governor Cuomo recognized that the law in its current form unduly restricts employees from deducting payments from their paychecks for valuable services provided by employers. The legislation also greatly benefits employers who may now more easily recover salary or wage advances and inadvertent overpayments. Currently, NYLL § 193 permits New York employers to deduct employee wages in limited circumstances such as for tax deductions, Medicare contributions, insurance premium payments, health and retirement benefits, contributions to charitable organizations and union dues. Much to the frustration of employers, deductions may not be made to recover salary or wage advances and inadvertent overpayments. The new legislation significantly expands employers’ ability to make wage deductions. Most significantly, employers will be able to make wage deductions to recover wage or salary overpayments due to mathematical or clerical mistake and wage or salary advances. In order to do so, employers will be required to comply with regulations to be promulgated by the NYDOL. The regulations will dictate, among other things, notice requirements, the maximum amounts which may be recovered, the frequency of recovery and procedures employers must establish to allow employees to dispute overpayment or advancement amounts. Beyond overpayments and advances, the new legislation will also permit employers, with appropriate employee consent, to make deductions for: