NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10342
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:
The purpose of this bill is to extend for two years provisions in Labor
Law that allow certain wage deductions.
SUMMARY OF PROVISIONS:
Section 1 of this bill would extend provisions in section 193 of Labor
Law that allow certain wage deductions until December 31, 2028. These
wage deductions can only be done for one of four reasons: 1) when they
are done in accordance with specific laws or regulations issued by any
governmental agency, 2) when they are expressly authorized by the
employee and for their benefit, 3) when they are related to recovery of
overpayment of wages when due to mathematical or clerical error, and 4)
when they are for repayment of advances of salary or wages.
Section 2 is the effective date.
JUSTIFICATION:
Before these provisions were added in 2012, the law unduly restricted
employees from deducting payments from their paychecks for valuable
services provided by their employers. This was disadvantageous to both
employers and employees. The provisions being extended allow employers,
with their employees' consent, to deduct wages from employees' paycheck
to cover specified goods and services. These provisions also allow
employers to make arrangements with service providers, including health
clubs, day care centers, and parking vendors for the benefit of employ-
ees who wish to utilize such services and pay through a wage deduction
system. Further, these provisions ensure that employees are fully
informed of the terms associated with all voluntary deductions.
In addition, the inadvertent overpayment of wages due to mathematical or
other clerical errors occurs with some frequency. These provisions allow
the recapture of overpayments pursuant to regulations promulgated by the
Commissioner. Similarly, these provisions provide a regulatory framework
by which employers may give employees advances on wages, allowing
employees to weather financial setbacks or address unexpected expenses.
In recognition of the importance of these provisions, they should be
extended for another two years.
PRIOR LEGISLATIVE HISTORY:
Chapter 142 of the Laws of 2024 (A.9768/5.9369)
Chapter 301 of the Laws of 2022 (A.10181/5.9338)
Chapter 58 of the Laws of 2020 (A.9508-B/S.7508-B)
Chapter 368 of the Laws of 2018 (A.10615/S.8834)
Chapter 386 of the Laws of 2015 (A.7594/S.5623)
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
10342
IN ASSEMBLY
February 25, 2026
___________
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 142 of the laws of 2024, 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 [14] 16 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.
LBD04112-01-5
