New Jersey Administrative Code
Title 12 - LABOR AND WORKFORCE DEVELOPMENT
Chapter 55 - WAGE PAYMENTS
Subchapter 2 - PAYROLL DEDUCTIONS
Section 12:55-2.1 - Payroll deductions; general
Universal Citation: NJ Admin Code 12:55-2.1
Current through Register Vol. 56, No. 18, September 16, 2024
(a) No employer may withhold or divert any portion of an employee's wages unless:
1. The employer is required or empowered to do so
by New Jersey or United States law; or
2. The amounts withheld or diverted are for:
i. Contributions authorized either in writing by
employees, or under a collective bargaining agreement, to employee welfare,
insurance, hospitalization, medical or surgical or both, pension, retirement, and
profit-sharing plans, and to plans establishing individual retirement annuities on a
group or individual basis, as defined by section 408(b) of the Federal Internal
Revenue Code of 1954 as amended (26 U.S.C.
408(b)) , or individual
retirement accounts at any State or Federally chartered bank, savings bank, or
savings and loan association, as defined by section 408(a) of the Federal Internal
Revenue Code of 1954, as amended (26 U.S.C.
408(a)) , for the employee, his
or her spouse or both.
ii. Contributions
authorized either in writing by employees, or under a collective bargaining
agreement, for payment into company-operated thrift plans; or security option or
security purchase plans to buy securities of the employing corporation, an
affiliated corporation, or other corporations at market price or less, provided such
securities are listed on a stock exchange or are marketable over the
counter.
iii. Payments authorized by
employees for payment into employee personal savings accounts, such as payments to a
credit union, savings fund society, savings and loan or building and loan
association; and payments to banks for Christmas, vacation, or other savings funds;
provided all such deductions are approved by the employer.
iv. Payments for company products purchased in
accordance with a periodic payment schedule contained in the original purchase
agreement; payments for employer loans to employees, in accordance with a periodic
payment schedule contained in the original loan agreement; payments for safety
equipment; payments for the purchase of United States Government bonds; and payments
to correct payroll errors; provided all such deductions are approved by the
employer.
v. Contributions authorized by
employees for organized and generally recognized charities; provided the deductions
for such contributions are approved by the employer.
vi. Payments authorized by employees or their
collective bargaining agents for the rental of work clothing or uniforms or for the
laundering or dry cleaning of work clothing or uniforms; provided to the employee at
his or her discretion by an outside vendor or the employer and, provided the
deductions for such payments are approved by the employer.
vii. Labor organization dues and initiation fees,
and such other labor organization charges permitted by law.
viii. Payments authorized either in writing by
employees, or under a collective bargaining agreement, for health club membership
fees or for child care services, provided such deductions are approved by the
employer.
ix. Such other contributions,
deductions and payment as the Commissioner of Labor and Workforce Development may
authorize by regulation as proper and in conformity with the intent and purpose of
the Act, if such deductions are approved by the employer.
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