On Thursday, June 21, 2012 hospitals and other organizations across New York State received some good news when the state’s Senate and Assembly passed a new bill for Section 193 of the New York State Labor Law allowing employers to make deductions from employees’ paychecks for things like discounted parking costs, certain mass transit costs, certain purchases from charities affiliated with the employer, gym membership dues, pharmacy purchases made at the employer’s place of business, tuition, room, and board payments for educational pursuits, day care costs, and more!
Previously, state law only allowed payroll deduction for a small number of circumstances – like insurance payments and pension benefits. That law was originally meant to protect employees, but these days the words “payroll deduction” can mean really good things for employees, and the law was holding organizations back from offering certain benefits to their employees.
The new legislation will allow deductions for many more uses, including purchases in on-site locations like cafeterias, gift shops, and pharmacies. This means employees can make these purchases without the hassle of carrying cash or the costs associated with credit card fees and interest. Organizations can even allow employees to pay by swiping their ID badges, so transactions are extremely quick and employees don’t have to carry anything other than the badge they were already carrying.
The bill will officially become law in the upcoming months – great news for hospitals and organizations in New York State and their employees!