Implementation of the Pay Deductions Law

Adopted Rules: Closed to Comments

Effective Date: 
Tuesday, November 28, 2017
Download Copy of Adopted Rule (.pdf): 


Notice of Adoption of Rules

NOTICE IS HEREBY GIVEN PURSUANT TO THE AUTHORITY VESTED IN the Commissioner of the Department of Consumer Affairs by Sections 20-a, 1043, and 2203(f) of the New York City Charter, and Chapter 13 of Title 20 of the New York City Administrative Code, and in accordance with the requirements of Section 1043 of the New York City Charter, of the adoption of an amendment to Title 6 of the Rules of the City of New York by adding subchapter G to chapter 7 to implement and clarify provisions in Chapter 13 of Title 20 of the New York City Administrative Code (the “Pay Deductions Law”) and to provide guidance to covered employers and protected workers.       

The rules were proposed on October 18, 2017. The required public hearing was held on November 17, 2017.

Statement of Basis and Purpose of Rules

In May 2017, New York City Mayor Bill de Blasio signed into law a bill to give fast food employees the ability to make voluntary contributions to not-for-profit organizations through payroll deductions under certain circumstances.

These rules add a new Subchapter G to Chapter 7 of Title 6 of the Rules of the City of New York to implement this new law and provide guidance on when and how fast food employers must make such payroll deductions. Specifically, these rules:

·         Define terms used in the new Pay Deductions law.

·         Clarify that the authorization shall state that an authorization can be revoked by contacting the not-for-profit‘s contact person or not-for-profit in writing.

·         Clarify that an electronic signature has the same effect as a handwritten signature.

·         Establish when an authorization is presumed to have been received by an employer.

·         Clarify that a fast food employer shall not begin deductions prior to the start date indicated on an authorization.

·         Establish that a not-for-profit must notify fast food employees of when the not-for-profit intends to transmit authorizations to the fast food employer if more than 180 dayshas elapsed since the not-for-profit received an employee’s authorization and the not-for-profit has not yet transmitted it.

·         Establish which of their employees not-for-profits must include on their required disclosures.

·         Clarify that IRS form 990, or an equivalent tax form if no form 990 was filed, is sufficient for disclosing a not-for-profit’s finances.

·         Establish the format for posting disclosures on a single webpage.

·         Clarify what a false or misleading disclosure is.

·         Establish what constitutes an acceptable form of proof of not-for-profit status.

·         Establish what constitutes acceptable proof that a not-for-profit made required disclosures to fast food employees.

·         Establish how costs associated with deductions and remittances will be calculated.

·         Clarify how an authorization may be revoked.

·         Establish procedures for reexamining or revoking a not-for-profit’s registration.

·         Clarify what rights are protected against retaliation.

·         Establish procedures for enforcement.

·         Establish procedures relating to civil actions.

·         Clarify the records fast food employers must retain.

·         Clarify that rights created by the Pay Deductions Law may not be prospectively waived.


Sections20-a, 1043, and 2203(f) ofthe New York City Charter and Chapter 13 of Title 20 of the New York City Administrative Code authorize the Department of Consumer Affairs Office of Labor Policy & Standards to make these proposed rules.