New York DOL Issues Opinion on Wage Deductions
The New York Department of Labor recently issued an opinion letter dramatically impacting how New York employers can address employee overpayments. The DOL now takes the position that deductions from an employee's wages for money owed to the employer are impermissible, even if the employee has consented. In addition, while an employer is entitled to demand repayment from the employee, it cannot threaten the employee with discipline for failing to do so and must affirmatively communicate that the employee's refusal will not result in discipline or retaliatory action. The DOL's position is that employers are not entitled to "self-help" but instead must seek relief by filing a lawsuit against the employee.
