Thanks Albany: Labor Law Amendment Expands Permissible Deductions From Employees' Wages

Some unexpected but welcome news for New York State employers: an amendment to the Labor Law that loosens restrictions on employers’ ability to make authorized deductions from employees’ wages.

On June 21, the Legislature passed an extensive revision to Section 193 of the Labor Law that establishes a host of new grounds for wage deductions.  Of most significance to employers are provisions that would allow them to recoup pay advances and inadvertent overpayments.  Under the prior law, deductions were allowed for only a few enumerated reasons.

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