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New York Deductions from Wages

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Permissible Deductions

Employers are generally prohibited from deducting employees’ wages, except deductions which:

  • Are related to recovery of an overpayment of wages where such overpayment is due to a error by the employer, or for repayment of advances of salary or wages made by the employer to the employee; or
  • Are expressly authorized in writing by the employee and are for the benefit of the employee, provided that such authorization is voluntary and only given following receipt by the employee of written notice of all terms and conditions of the payment and/or its benefits and the details of the manner in which deductions will be made. Such authorized deductions are limited to payments for (among other things):
    • Insurance premiums;
    • Pension or health and welfare benefits;
    • Payments for or dues or assessments to a labor organization; or
    • Discounted parking or discounted passes that entitle the employee to use mass transit.

Prohibited Deductions

Employers may not make deductions for the following (among other things): 

  • Employee purchases of tools, equipment, and attire required for work;
  • Recoupment of unauthorized expenses;
  • Repayment of employer losses, including for spoilage and breakage, cash shortages, and fines or penalties incurred by the employer through the conduct of the employee; or
  • Fines or penalties for tardiness, excessive leave, misconduct, or quitting without notice.

Additional requirements and exceptions to the information above may apply to your business. For more information, please contact the New York Department of Labor at 1-888-469-7365.

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency.

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