In a previous article, we discussed the wage deduction legislation that Governor Andrew Cuomo signed into law in September 2012, which amended New York Labor Law §193 and expanded the types of deductions that an employer permissibly may make from employees' wages.1 Although the legislation took effect in November 2012, the new law also provides that wage deductions must comply with regulations promulgated by the New York Department of Labor. N.Y. LAB. LAW §193(1)(c)-(d). To that end, approximately six months after the effective date of the new law, the Labor Department published its proposed wage deduction regulations in the May 22, 2013, issue of the New York State Register, and received public comments through July 6, 2013.
Although these regulations provide some guidance to employers, importantly, they are not yet in final form, and employers should be aware that they are still subject to potential revisions. In this article, we review the newly proposed regulations, including new rules regarding wage deductions for overpayments and salary advances and deductions "for the benefit of the employee." We also make some practical suggestions that employers may wish to consider in anticipation of complying with these proposed regulations.