Q: Can a New York Employer Deduct Overpaid Wages From
an Employee’s Paycheck?
|A: Currently, deductions from
an employee’s wages for money owed to the employer as a result of an overpayment
of wages are prohibited in New York
even with the employee’s written consent. Recently, both houses of the New York
Legislature passed Bill 49 which amends New York state labor laws to allow new
deductions from employee paychecks including (among others) deductions for
overpayments of wages due to mathematical or clerical errors. All deductions must be voluntary and authorized
in writing by the employee.
Authorization records must be kept during the employee’s term and for
six years after employment ends. Also,
employers will have to give prior written notice of any repayment schedule and
the employee must be notified in advance of any substantial changes. Employers will also have to establish a
procedure for disputing repayment terms. Bill 49 is expected to be signed by the
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