Manufacturers Association of Central New York Contact Information Products / Services Event Calendar About MACNY
MACNY Stripes



Email
Pass
Login
No account?  Register
Skip Navigation LinksHome > Members Only > Paid Time Off

Paid Time Off


Question: We are currently writing a Paid Time Off (PTO) Policy giving employees an allotted number of days per year to use for vacation, sick time, personal time, etc. They earn the time incrementally, month by month. We were thinking of allowing employees to borrow from their current year’s projected PTO. If they terminate before it is earned, can we deduct the amount they were paid from their last paycheck?

Answer: The Wage & Hour Division of the New York State Department of Labor (DOL) has become much more flexible than they were in the past when it comes to payroll deductions. N.Y. Labor Law Section 193 states that no employer shall make any deduction from employee wages except deductions which are expressly authorized in writing by the employee and are for the benefit of the employee. Payments in a PTO Plan are for the benefit of the employee so deducting it from the last paycheck would be legal. In addition, DOL allows you to deduct overpayments to employees from the next weeks pay check. If it goes beyond the week, however, you must get DOL approval to make the deductions and they can’t exceed 10%. Deductions from pay for things like broken tools or equipment and employee discipline are still not allowed.


MACNY Montage
MACNY News
MACNY Events
Fri. 08.08.08
Lean 101 Factory
Thu. 08.14.08
MACNY Offers FREE Training
Fri. 08.15.08
2008 CNY Employer of Distinction Awards - Application
Wed. 08.20.08
MACNY Offers FREE Training
Wed. 09.10.08
Welcome Back Council Reception
One Webster's Landing Syracuse, NY 13202 | Tel: 315-474-4201 | Fax: 315-474-0524 | Email: jlawyer@macny.org