New York Codes, Rules and Regulations › Title 12 - DEPARTMENT OF LABOR › Chapter II - DIVISION OF LABOR STANDARDS › Subchapter G - Deductions From Wages › Part 195 - Deductions From Wages › Subpart 195-5 - Deductions For Advances And Overpayments › Section 195-5.2 - Deductions for advances

Current through Register Vol. 46, No. 28, July 10, 2024
Section 193, subdivision 1(d), of the New York State
						Labor Law permits an employer to make deductions from an employee's wages for
						repayment of advances of salary or wages made by the employer to the employee.
						An advance is the provision of money by the employer to the employee based on
						the anticipation of the earning of future wages. Any provision of money which
						is accompanied by interest, fee(s) or a repayment amount consisting of anything
						other than the strict amount provided, is not an advance, and may not be
						reclaimed through the deduction of wages. Deductions made in repayment of an
						advance are only permitted as follows:
(a) Timing and duration. The employer and
					 employee must agree to the timing and duration of the repayment deduction in
					 writing before the advance is given. Once an advance is given, no further
					 advance may be given or deducted until any existing advance has been repaid in
					 full. Any money given by the employer to the employee in excess of the amounts
					 and durations permitted to be deducted pursuant this Part shall not be
					 recoverable through wage deductions.
(b) Frequency. The employer shall recover
					 advances by wage deduction no more than each wage payment, provided that such
					 deduction complies with this Part.
(c) Method of recovery. Advances may be
					 recovered through wage deduction or by separate transaction, as long as the
					 procedures of subdivisions (a) and (d) through (i) of this section are
					 followed. For purposes of this section, payments referenced as wage deductions
					 shall include separate transactions.
(d) Limitations on the periodic amount of
					 recovery. The amount recovered through deduction per wage payment shall be
					 determined by the written terms of the advance authorization, and may include
					 total reclamation through deduction of the last wage payment should employment
					 end prior to the expiration of the other terms of the written advance
					 authorization.
(e) Authorization.
					 Prior to the advance being given to the employee the employee shall give
					 written authorization for the deduction(s) to be made to repay the advance.
					 Such authorization shall contain the amount to be advanced, the amount to be
					 deducted to repay the advance in total and per wage payment and the date(s)
					 when each such deduction shall be taken. This authorization may only be revoked
					 prior to the actual provision of the advance by the employer. The authorization
					 shall also include notice to the employee that he or she may contest any
					 deduction that is not in accordance with the terms of the written advance
					 authorization.
(f) The employer
					 shall implement a procedure by which the employee, after receiving the advance,
					 may dispute the amount and frequency of deductions that are not in accordance
					 with the terms of the written advance authorization. An employee receiving such
					 an advance shall be given written notice of this procedure. Dispute resolution
					 provisions in collective bargaining agreements existing at the time of issuance
					 of these regulations which provide at least as much protection to the employee
					 shall be deemed to be in compliance with this section. Dispute resolution
					 provisions in collective bargaining agreements executed after the issuance of
					 these regulations which provide at least as much protection to the employee and
					 which specifically reference this section shall also be deemed to be in
					 compliance with this section.
(1) The
					 employee shall be able to provide written notice of the employee's objection to
					 the deduction.
(2) The employer
					 shall reply in writing to the employee's objection as soon as practical. Such
					 reply shall address the issues raised by the employee's objection, and contain
					 a clear statement indicating the employer's position with regard to the
					 deduction, including whether the employer agrees with the employee's
					 position(s) regarding the deduction or disagrees with the employee's
					 position(s) and provide a reason why the employer agrees or
					 disagrees.