Legal Wage Deductions in New York
Whether weekly, bi-monthly or some other cycle ask any New York employee and they will tell you that pay day is always a good day. But what happens when the numbers of the pay check don’t look the same as the amount you were expecting?
New York wage deductions are taken out for items such as: state and federal taxes, health care, stock options and other payments. Although most of these deductions are part of your benefit package, the shock of the cumulative effect remains the same.
There is a lot of talk about New York wage deduction laws that have a substantial impact on the amount of money you take home every month. Limitations provided for in Section 193 of the New York State Labor Law does not apply to public employees so unless you fall into that category, keep reading! When it comes to legal wage deductions there are five basic categories allowed in New York:
1. Healthcare: wage deductions made for the payment of insurance premiums is not only legal but likely a plan that you had an active part in devising.
2. Pension: 401K contributions, retirement accounts and other types of health and welfare benefits fall under this deduction allowance. And with the full awareness of sounding cliché, you are saving for your future under this category.
3. Charity: Contributions to charitable organizations are lawful deductions that may or may not apply to you as an employee.
4. United States Bonds: Good luck arguing against this one! United States bonds are a legal deduction in all 50 states.
5. Labor Organization Payments: If you are a member of a labor organization, then you are making payments on whatever basis is dictated by the organization.
One other general category to keep in mind is that if you have agreed to certain other deductions, then you have agreed to them and will need to revisit the issue with your employer if it is something that needs to be changed.
The good news is that a lot of these deductions, although they may seem like a financial hit, are a direct benefit to you as an employee. The bad news is there are a lot of situations where an employer is making illegal deductions. If you think that is the case, give us a call.
