September, 2012

On September 8, 2012, Governor Andrew Cuomo signed legislation amending section 193 of the New York Labor Law, which prohibited all but a narrow category of deductions from employee wages. The amendment expands the scope of permissible deductions, including permitting employers to recover wage overpayments as well as employee loan repayments. In addition, the amendment to the New York Labor Law permits wage deductions for purchases made at certain charitable events; discounted parking and transit costs; gym membership dues; cafeteria, vending machine and pharmacy purchases; tuition and certain school-related expenses; and payments for certain housing provided by non-profit hospitals.
The permitted wage deductions are still for the benefit of the employee, with the exception, perhaps, of those permitting the recovery of wage overpayments and loan repayments.
The amendment to the New York Labor Law takes effect on November 7, 2012.

The Americans with Disabilities Act (“ADA”) requires that employers consider possible reasonable accommodations that would permit disabled employees to perform the essential functions of their jobs. According to to the ADA, a reasonable accommodation could include a reassignment to a vacant position. In Equal Employment Opportunity Commission v. United Airlines, Inc. (No. 11-1774), the United States Court of Appeals for the Seventh Circuit considered United Airlines’ guidelines for transferring employees in light of the ADA’s requirements. United Airlines’ guidelines specified that its employee transfer process was competitive, so that an employee in need of accommodation would not be automatically assigned to a vacant position, but would be given preference over similarly situated applicants. The Equal Employment Opportunity Commission (“EEOC”) challenged the policy under the ADA. Although the district court ruled in United Airlines’ favor, the Seventh Circuit reversed and held that the ADA does, in fact, mandate that an employer reassign employees with disabilities to vacant positions for which they are qualified, provided that the such accommodations would be ordinarily reasonable and not present an undue hardship to that employer.

Articles Posted in September, 2012

New York Governor Signs Legislation Broadening Scope of Permissible Wage Deductions Under New York Labor Law

Americans with Disabilities Act Requires Employers to Transfer Employees Who are Losing their Current Positions Due to Disability to a Vacant Position for which they are Qualified