As an employee in New York City, you work hard for every dollar you earn from your employer. Discovering that your employer has been unlawfully withholding your wages can be disheartening. However, it’s important to remember that New York City employers are bound by local, state, and federal wage and hour laws. When these laws are violated, you can pursue damages as an affected employee.
The New York City employment attorneys at Lipsky Lowe LLP are not just experienced attorneys but also your advocates. We know how to hold employers accountable when they fail to pay employees their total wages. When you work with us, you can rest assured that we will carefully review your case, help you understand your legal rights, and begin pursuing the best outcome possible.
Allowable Wage Deductions in New York
While some types of wage deductions are considered unlawful, employers can withhold portions of their employee’s wages in some instances. Local, state, and federal laws allow employers to make a wide range of deductions legally, including deductions related to payments for the following employee benefits:
- Local, state, and federal tax withholdings
- Charitable contributions
- Daycare expenses
- Fitness center or health club membership fees
- Life and health insurance premiums
- Purchases made at employer events or marketplace
- Recovery of overpaid wages due to a clerical or mathematical error
- Transit passes
- Union dues
- Parking passes
When Is a Wage Deduction Considered Unlawful?
The same laws that allow these specific types of deductions require that employees agree in writing to the deduction before the employee begins deducting the particular item. When employees haven’t given prior written consent to these types of deductions, the deductions are considered unlawful, and the employer may be liable for financial damages.
Additionally, the deduction cannot exceed the agreed-upon amount. Any change in the amount of the wage deduction needs to be authorized in writing by the employee. The deduction is unlawful if your employer increases the deduction amount without obtaining your written permission.
By law, employers must keep copies of the notices of deductions on file while you work for the employer and for six years after you leave the company. If your employer withholds a portion of your wages for any of the deductions mentioned above and you haven’t given them written consent, you must contact an attorney.
Examples of Unlawful Wage Deductions
Employers unlawfully withhold wages from their employees in many ways. One of the most common types of unlawful wage deductions involves employers taking gratuities or tips earned by an employee. For example, an employer cannot deduct the tips a server earned in a night from the server’s hourly wages. Restaurants can allow tip pooling among employees who provide direct table service to customers, but they need to do so in a way that complies with New York City and state laws.
Employees cannot be penalized for their expenses because of their work-related activities. For example, suppose an employer asks an hourly employee to drive an hour in their personal vehicle to drop off a product for a customer. The employer should reimburse the employee for the gas the employee used to drive the product to the customer.
Additionally, an employer cannot deduct from the expense of medical or physical examinations required as a condition of employment. For example, if an employer requires an applicant to undergo yearly physicals to keep their job, the employer cannot deduct the cost of the physical from the employee’s wages. Similarly, if the employer requires that an employee wear a uniform, the employer cannot deduct the cost of the uniform from the employee’s hourly salary. Other prohibited wage deductions include:
- Wage deductions for employee theft
- Equipment, tools, and clothing required for work
- The employer’s fees, interest, or administrative costs
- Deductions for food
- Deductions for cable television
- Housing and utilities
Can an Employer Deduct the Cost of Damaged Property from My Wages?
Under New York law, Employers are prohibited from making deductions from your paycheck for broken equipment or tools, even if you broke them accidentally. Suppose there are shortages in your cash register at the end of your shift. In that case, your employer can pursue disciplinary action and may bring a claim against you for the damages, but they cannot deduct the missing money from your paycheck.
Also, employers cannot take wage deductions to repay themselves for employer losses, including product damage and spoilage. Finally, employers cannot deduct compensation from your wages due to tardiness, excessive employee misconduct, or quitting without notice.
Recovering Compensation for Your Employer’s Unlawful Wage Deductions
The first step in reclaiming your rights and recovering compensation after your employer has made an illegal deduction to your paycheck is to take action. Speak with an employment attorney who can guide you through recovering the wages and other damages you’ve incurred. Remember, as an employee, you can ask your employer why compensation was deducted from your paycheck.
You also have the right to ask your employer for proof that they told you about the deductions and that you provided written consent. If you didn’t receive a rationale for the deductions or proof you can send them, you have the right to pursue a complaint with the New York Department of Labor. This involves filling out a complaint form, providing relevant documentation, and potentially participating in an investigation. Your employer cannot retaliate against you for pursuing legal action, and if they do, you may have additional legal recourse.
Contact an Employment Attorney in New York City
If you suspect your employer has been engaging in unlawful wage deductions, remember that you don’t have to face this alone. The most effective solution is to seek the support of an employment attorney as your first step. At Lipsky Lowe LLP, we have a proven track record of fighting for employees’ rights in New York City. Contact Lipsky Lowe LLP to schedule a complimentary case evaluation and learn more about how we can fight for your rights.