Payroll Insights
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July 24, 2017

New York City Voluntary Payroll Deduction Ordinance (“Payroll Ordinance”)

Table of Contents

Background on the final act

New York City fast food workers can now request that deductions be made from their paychecks and sent to the nonprofit organization of their choice. This ordinance is one of a series of bills designated to benefit New York fast food workers.

Either the employee or the selected nonprofit organization must provide the employer with written authorization to make payroll deductions.

The authorization may be electronic or written and must include:

  • The employee’s signature
  • The employee’s name and address
  • The amount, frequency and start date of the contribution
  • The name, address, email address, web address, and phone number of the nonprofit organization to which the employee wishes to contribute, and a contact for an employee who seeks to revoke authorization
  • A statement notifying the employee that contributions are voluntary and that the authorization to deduct is revocable at any time by submitting a written revocation to the nonprofit organization.

The authorization is valid until the employee revokes it in writing to the nonprofit organization, who must transmit the revocation to the employer.

General impact to employers

Employers are not required to honor authorizations for contributions:

  • Less than $6 per pay check if the employee is paid every two weeks
  • Less than $3 per pay check if the employee is paid every week
  • More than once per pay period

Employers that violate this ordinance must pay any missed deductions authorized by the employee plus interest. Employers are also subject to penalties of $500 to $1,000 per violation, depending on the number of violations.

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