What's happening
This bill extends for two more years the law allowing certain deductions from employee wages.
Why it matters
Affects both employees and employers statewide. by continuing to allow certain wage deductions that might otherwise be prohibited, impacting payroll practices for a wide range of businesses and workers.
Maintains the status quo for another two years. instead of letting the law expire, meaning any benefits or protections these specific deductions offer (such as those for wellness programs, transit benefits, or repayment of wage advances) will remain in place.
Prevents immediate disruption or confusion. for payroll departments and employees across New York by keeping rules consistent, avoiding the need for abrupt changes to established payroll systems and employee agreements.
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Who cares
Employers and Payroll Administrators
Care because this bill extends the period during which specific wage deductions are permitted, affecting payroll processes and compliance obligations.
Employees
Care because the extension impacts what deductions can legally be taken from their wages, potentially affecting take-home pay and benefits.
- Watching
Labor Unions and Worker Advocacy Groups
Care as they monitor and advocate for employee wage rights, and any change extending deduction provisions is relevant to their interests.
State Labor Department/Regulators
Care because they are responsible for enforcing wage and hour laws, and the extension changes their oversight timeframe.
Headline styles
Extend Wage Deduction Law
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A10342
- Ordered to third reading cal.1522
- Committee discharged and committed to rules
- Referred to labor
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extend Wage Deduction Law
Signed by Governor · Sponsor Steven Raga
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10569
IN SENATE
May 26, 2026
Introduced by Sen. RAMOS -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend chapter 451 of the laws of 2012 amending the labor law relating to permitted deductions from wages, in relation to extending the effectiveness of such provisions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3 of chapter 451 of the laws of 2012 amending the labor law relating to permitted deductions from wages, as amended by chapter 142 of the laws of 2024, is amended to read as follows:
§ 3. This act shall take effect on the sixtieth day after it shall have become a law and shall expire and be deemed repealed [14] 16 years after such effective date.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04112-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend chapter 451 of the laws of 2012 amending the labor law relating to permitted deductions from wages, in relation to extending the effectiveness of such provisions
Purpose or general idea of bill
The purpose of this bill is to extend for two years provisions in Labor Law that allow certain wage deductions.
Summary of provisions
Section 1 of this bill would extend provisions in section 193 of Labor Law that allow certain wage deductions until December 31, 2028. These wage deductions can only be done for one of four reasons: 1) when they are done in accordance with specific laws or regulations issued by any governmental agency, 2) when they are expressly authorized by the employee and for their benefit, 3) when they are related to recovery of overpayment of wages when due to mathematical or clerical error, and 4) when they are for repayment of advances of salary or wages.
Section 2 is the effective date.
Justification
Before these provisions were added in 2012, the law unduly restricted employees from deducting payments from their paychecks for valuable services provided by their employers. This was disadvantageous to both employers and employees. The provisions being extended allow employers, with their employees' consent, to deduct wages from employees' paycheck to cover specified goods and services. These provisions also allow employers to make arrangements with service providers, including health clubs, day care centers, and parking vendors for the benefit of employ- ees who wish to utilize such services and pay through a wage deduction system. Further, these provisions ensure that employees are fully informed of the terms associated with all voluntary deductions.
In addition, the inadvertent overpayment of wages due to mathematical or other clerical errors occurs with some frequency. These provisions allow the recapture of overpayments pursuant to regulations promulgated by the Commissioner. Similarly, these provisions provide a regulatory framework by which employers may give employees advances on wages, allowing employees to weather financial setbacks or address unexpected expenses. In recognition of the importance of these provisions, they should be extended for another two years.
Prior legislative history
Chapter 142 of the Laws of 2024 (A.9768/S.9369)
Chapter 301 of the Laws of 2022 (A.10181/S.9338)
Chapter 58 of the Laws of 2020 (A.9508-B/S.7508-B)
Chapter 368 of the Laws of 2018 (A.10615/S.8834) Chapter 386 of the Laws of 2015 (A.7594/S.5623)
Fiscal implications for state and local governments
To be determined.
Effective date
This act would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.