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October 29, 2015

Governor Cuomo Extends Wage Deduction Law

On October 26, 2015, Governor Andrew Cuomo signed into law a bill extending the Wage Deduction Law for an additional three years, until 2018.  The Wage Deduction Law, which took effect on November 6, 2012, amended Section 193 of the Labor Law to allow employers to make deductions from wages for a broader category of services provided to employees and, in certain cases, allow employers to deduct wages as a means of recapturing overpayments or repayment of loans. Absent the extension, the law would expire on November 6, 2015. 

Under the Wage Deduction Law, employers may make deductions from employee wages for the following payments: insurance premiums and prepaid legal plans; pension or health and welfare benefits; contributions to a bona fide charitable organization; purchases made at events sponsored by a bona fide charitable organization; U.S. bonds; dues or assessments to a labor organization; discounted parking, or means for employees to use mass transit; gym membership dues; cafeteria, vending machine, and pharmacy purchases made on the employer’s premises where the employer is a hospital, college or university; tuition, room, board, and fees for educational institutions; day care expenses; and payments for housing provided at no more than market rates by non-profit hospitals. The Wage Deduction Law also allows employers to use wage deductions as a means of recapturing overpayments made due to clerical error and to recover salary advancements.  Any wage deduction requires prior written employee authorization. For further information on the Wage Deduction Law, see our alert dated September 12, 2012, available at

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If you have any questions regarding the Wage Deduction Law, please do not hesitate to contact us.