The New York Department of Labor (NYDOL) this past week issued final rules enabling employers to collect overpaid wages and pay advances from employees through paycheck deductions, providing certain conditions are met.
The final rules implement a law that Gov. Andrew Cumo signed in September 2012. Employers had been waiting for NYDOL regulations before proceeding.
The rules set up conditions that must be followed, including written notice of the paycheck deductions, a limitation on the deduction per pay period to 12.5 percent of gross wages (providing the deduction does not bring the employee's wages below the state minimum wage of $8 an hour), and restricting deductions to one per employee per pay period. A dispute resolution process must also be implemented.