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Understanding NY Laws about Paycheck Deductions
Laws vary from state to state regarding deducting for loans or legitimate business losses from an employee’s paycheck. New York has very strict labor laws regarding this, stricter than laws in many other states. In addition, current guidelines have changed from what they were in the past.
Guidelines Regarding NY Paycheck Deductions
New York State Labor Law provides guidelines that list what paycheck deductions are legal.
After receiving notice of all terms and conditions of the payment/benefits and details about the manner in which the deductions will be made, employees must voluntarily authorize the deductions in writing.
Authorized deductions include:
It is also important to notice what types of deductions are not valid: uniforms, purchases of tools and equipment for work, breakage losses, tardiness or misconduct fines and contributions to political campaigns. (New York Labor Law Part 195 Deductions from Wages)
Are You an Employer with Questions about Employment Law?
If you are uncertain about complying with employment laws or face a dispute or lawsuit brought against you by an employee, our attorneys at Stephen Hans & Associates are glad to discuss your concerns.