SB 336 – AS INTRODUCED

2010 SESSION

10-2902

06/10

SENATE BILL 336

AN ACT relative to payroll deductions.

SPONSORS: Sen. Bragdon, Dist 11; Rep. Daniels, Hills 6

COMMITTEE: Commerce, Labor and Consumer Protection

ANALYSIS

This bill permits an employer to withhold a portion of an employee’s wages for any mutually agreed upon purpose.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2902

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to payroll deductions.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Withholding of Wages. Amend RSA 275:48, I to read as follows:

I. No employer may withhold or divert any portion of an employee’s wages unless:

(a) The employer is required or empowered to do so by state or federal law, including payroll taxes.

(b) The employer has a written authorization by the employee for deductions for a lawful purpose accruing to the benefit of the employee as provided in regulations issued by the commissioner , as provided in subparagraph (d) or [for any of the following]:

(1) Union dues;

(2) Health, welfare pension, and apprenticeship fund contributions;

(3) Voluntary contributions to charities;

(4) Housing and utilities;

(5) Payments into savings funds held by someone other than the employer;

(6) Voluntary rental fees for non-required clothing;

(7) Voluntary cleaning of uniforms and non-required clothing;

(8) The employee’s use of a vehicle under RSA 261:111, III;

(9) Medical, surgical, hospital and other group insurance benefits without financial advantage to the employer, when the employee has given his or her written authorization and deductions are duly recorded; and

(10) Required clothing not covered by the definition of uniform] for any other purpose on which the employer and employee mutually agree.

(c) The deductions are pursuant to any rules or regulations for medical, surgical, or hospital care or service, without financial benefit to the employer and openly, clearly, and in due course recorded in the employer’s books.

(d) Upon an employee’s written request, an employer may deduct the following items from the employee’s wages, provided that the employer shall provide a written itemized accounting of such requested deductions to the employee at least once per month:

[(1) Voluntary contributions into cafeteria plans or flexible benefit plans, or both, as authorized by section 125 or section 132 of the Internal Revenue Code.

(2) Voluntary payments by the employee for the following:

(A) Child care fees by a licensed child care provider.

(B) Parking fees.

(C) Pharmaceutical items, gift shop, and cafeteria items purchased on site of a hospital by hospital employees. ]

[(3)] (1) Voluntary installment payments of legitimate loans made by the employer to the employee as evidenced by a document that includes the following:

(A) The time the payments will begin and end.

(B) The amounts to be deducted.

(C) A specific agreement regarding whether the employer is allowed to deduct any amount outstanding from final wages at the termination of employment.

[(4)] (2) Voluntary payments for the recovery of accidental overpayment of wages when the following conditions are met:

(A) The recovery is agreed to in writing.

(B) The deduction for the overpayment begins one pay period following the date the parties execute the written agreement.

(C) The written agreement specifies:

(i) The date the recovery of the overpayment will begin and end.

(ii) The amount to be deducted, which shall be agreed upon by the employer and the employee but which shall, in no event, be more than 20 percent of the employee’s gross pay in any pay period.

(iii) A specific agreement regarding whether the employer is allowed to deduct any amount outstanding from final wages at the termination of employment.

[(5)] (3) Voluntary payments for the recovery of tuition for non-required educational costs paid by the employer for the employee to an educational institution when the specific deduction is authorized in writing prior to the deduction as evidenced by a document that includes the following:

(A) The time the payments will begin and end.

(B) The amounts to be deducted.

(C) A specific agreement regarding whether the employer is allowed to deduct any amount outstanding from final wages at the termination of employment.

[(6) Voluntary payments for the employee’s use of a health or fitness facility that is sponsored by the employer for the benefit of its employees and that is located within the employer’s facility or workplace, or operated by a private health and fitness facility that offers discounted memberships of 50 percent or more to all employees of the employer, as evidenced by a document that includes the following:

(A) The time the payments will begin and end.

(B) The amounts to be deducted.

(C) A specific agreement regarding whether the employer is allowed to deduct any amount outstanding from final wages at the termination of employment.

(e) The employee requests in writing that deductions may be made for contributions to a political action committee from the employee’s wages. ]

[(f)] (e) The employer has a written request from the employee, made at the time of the original request without coercion or pressure, that authorizes the employer to deduct from the employee’s final wages at the termination of employment any amount the employee may owe for voluntary payments for vacation pay, paid time off pay, earned time pay, personal time pay, annual pay, sick pay, sick dependent pay, and bereavement pay made pursuant to a written employment policy as required by RSA 275:49, III, when the payments have been requested and paid to the employee in advance of eligibility.

2 Effective Date. This act shall take effect 60 days after its passage.