Only certain deductions from a worker’s pay are allowable in New York State. Legal deductions include Social Security, Medicare, and taxes. Other deductions are allowed if they are for the benefit of the employee, and the employee has authorized the deduction in writing. Such authorized deductions may include retirement benefits, health insurance premiums, day care expenses, union dues, etc.
Breakage, spoilage, uniform costs and maintenance, cash shortages, and employer business costs are all illegal wage deductions in New York State, whether by payroll deduction or on the side.
Deductions from Wages (LS605)