Wage Deductions in New York
An employer may not deduct any money from an employee’s paycheck unless the employee has voluntarily authorized the deduction in writing and the deduction is for the employee’s own benefit.
N.Y.S. law prohibits deductions from an employee's paycheck unless such deductions are (1) made pursuant to law, (2) are expressly authorized in writing by the employee, (3) are for the benefit of the employee, and (4) do not exceed 10 percent of the employee's gross wages (minus required deductions) for the pay period. An employer must keep such authorization on file on its premises. The five (5) permitted wage deductions categories are:
- Payments for insurance premiums (including health, medical and dental insurance for the employee and/or the employee's family)
- Payments for pension or health and welfare benefits (including 401K contributions, and retirement account contributions)
- Contributions to charitable organizations
- Payments for United States bonds
- Payments for dues or assessments to a labor organization
Employers may not deduct from an employee's wages in order to recover any damages allegedly caused by an employee; nor may employers make wage deductions in any indirect manner, such as requiring an employee to pay for shortages by means of a separate transactions. Prohibited wage deductions include, but are not limited to:
- Repayment of loans, advances or debts
- Recovery of employment-related expenses
- Recovery for spoilage or breakage
- Purchases made from employers or employer-sponsored stores, cafeterias, and like establishments
- Cash register shortages
If you have any questions or need more information concerning your specific wage and hour issues, please call us at (914) 949-2700 or use our email form to get in touch with New York Labor and Employment Attorneys.