Scope of Payroll Deductions Widens

October 1, 2012 – In The News

New York state recently passed legislation that will expand the payroll deductions employers will be allowed to take from employee paychecks, including the ability to collect on overpayment of wages due to errors.

Deductions will still require an employee's written consent, said Carolyn D. Richmond.

In addition to allowing employers to collect for overpayment or salary advances, the legislation also allows them to make deductions for such services as discounted parking or mass transit expenses, fitness and gym membership dues and day-care expenses, Richmond said.

This can be helpful to an employee from a budgetary standpoint if, as a matter of convenience, they'd prefer knowing these expenses are being automatically deducted from their wages, she said. It could also be beneficial in cases where the employer may get a group discount on gym membership, for example, Richmond said.

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