MACNY - Overpayment of Wages

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Overpayment of Wages

Question: We recently discovered we had paid out an extra week of vacation to some of our employees. They have signed an agreement to have the overpayment deducted from their next four paychecks. Is that o.k.?

Answer: Not according to Section 193 of the New York State Labor Law which states no employer shall make any deductions from wages of an employee except deductions which “are for the benefit of the employee”. Such deductions shall be limited to payments for insurance premiums, pension or health and welfare benefits, contributions to charitable organizations, payments for United States bonds, payments for dues or assessments to a labor organization and similar payments for the benefit of the employee”.

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