Provides that recovery of wages due to a clerical error by the employer or vendor of the employer is prohibited if such clerical error did not result in an overpayment or other inaccuracy in the amount of wages paid or the time in which wages were dispersed.
Summary
S04516 amends New York Labor Law section 193 to narrow when an employer may recover wages from an employee’s pay. Under current law, employers may make deductions to recover overpayments caused by a mathematical or clerical error, subject to regulatory safeguards such as notice and a dispute process. This bill adds language stating that wage recovery is prohibited when the clerical error did not actually cause an overpayment or any other inaccuracy in the amount of wages paid or the timing of wage disbursement.
In practical terms, the bill is aimed at preventing employers from taking money back from employees when a payroll mistake did not result in the employee being paid too much or being paid at the wrong time. It preserves the existing framework for recovering true overpayments, but clarifies that employers and vendors acting on their behalf cannot use the wage-recovery process for errors that do not affect the employee’s pay amount or pay timing.
Impact
The bill would amend Labor Law § 193, which governs permissible wage deductions and recoveries, by adding an explicit limitation on recovery of wages tied to clerical errors. It would affect employers, payroll vendors, and employees by restricting payroll clawbacks to situations involving actual overpayments or other payment inaccuracies, while leaving the existing notice and dispute procedures for legitimate recoveries in place. The act takes effect immediately but is tied to the expiration and repeal of the underlying subdivision.
Sentiment
The available voting history shows strong support for the bill. It passed the Senate Labor Committee unanimously, 13-0, and later passed the Senate floor 52-0. With no recorded opposition in the provided materials and no committee transcript indicating controversy, the overall sentiment appears favorable and aligned with employee wage-protection concerns.
Contention
The main policy issue is the scope of employer authority to recover wages after payroll mistakes. Supporters appear to favor clearer limits on clawbacks to protect workers from deductions when there was no actual overpayment or timing error. Any potential concern would likely come from employers or payroll administrators who may want broader flexibility to correct payroll processing issues, but no explicit opposition is reflected in the provided votes or discussion materials.
Employment security: benefits; certain improperly paid benefits; require waiver of recovery as an administrative or clerical error. Amends sec. 62 of 1936 (Ex Sess) PA 1 (MCL 421.62).
Requires the employer, at the time of hiring, to furnish to their employees an itemized list of the terms and conditions of the employment and mandates that each payday a pay stub explaining how their wages were calculated is provided.
Eliminates provisions exempting employees with disabilities from the minimum wage law; provides that laws or minimum wage orders that authorize an employer to pay a wage that is less than the minimum wage are valid provided that under such laws or orders an employee with a disability is paid the same wage as an employee in a comparable position that does not have a disability.
Relates to audits conducted by the office of Medicaid inspector general detecting ministerial or clerical errors that generate an overpayment to a vendor providing non-emergency medical transportation services.
Relates to audits conducted by the office of Medicaid inspector general detecting ministerial or clerical errors that generate an overpayment to a vendor providing non-emergency medical transportation services.
Requires employers to pay employees accrued but unused vacation, paid time off, or other paid leave provided upon termination, resignation, retirement or other separation from employment.
Requires small employers with one to fifty (1-50) employees and large employers with fifty (50) or more employees to pay overtime wages to exempt workers if their salary exceeds varying multipliers of minimum wage for a forty (40) hour workweek.
Requires small employers with one to fifty (1-50) employees and large employers with fifty (50) or more employees to pay overtime wages to exempt workers if their salary exceeds varying multipliers of minimum wage for a forty (40) hour workweek.
Requires small employers with one to fifty (1-50) employees and large employers with fifty (50) or more employees to pay overtime wages to exempt workers if their salary exceeds varying multipliers of minimum wage for a forty (40) hour workweek.