P.L. 1997, CHAPTER 35, approved March 7, 1997

Assembly, No. 2335

An Act allowing certain withholdings from wages and amending P.L.1965 c. 173.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. Section 4 of P.L.1965, c.173 (C.34:11-4.4) is amended as follows:

    4. 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 New Jersey or United States law; or

    b. The amounts withheld or diverted are for:

    (1) 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] 1986 (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] 1986 (26 U.S.C.408(a)), for the employee, his spouse or both.

    (2) 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.

    (3) 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.

    (4) 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.

    (5) Contributions authorized by employees for organized and generally recognized charities; provided the deductions for such contributions are approved by the employer.

    (6) 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 the deductions for such payments are approved by the employer.

    (7) Labor organization dues and initiation fees, and such other labor organization charges permitted by law.

    (8) Contributions authorized in writing by employees, pursuant to a collective bargaining agreement, to a political committee, continuing political committee, or both, as defined in section 3 of P.L.1973, c.83 (C.19:44A-3), established by the employees' labor union for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question , subject to the conditions specified in section 2 of P.L.1991, c.190 (C.34:11-4.4a).

    (9) Contributions authorized in writing by employees to any political committee or continuing political committee, other than a committee provided for in paragraph (8) of this subsection, for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question, subject to the conditions specified in section 2 of P.L.1991, c.190 (C.34:11-4.4a); in making a payroll deduction pursuant to this paragraph the administrative expenses incurred by the employer shall be borne by such committee, at the option of the employer.

    (10) Payments authorized by employees for employer-sponsored programs for the purchase of insurance or annuities on a group or individual basis, if otherwise permitted by law.

    [(10)] (11) Such other contributions, deductions and payments as the Commissioner of Labor may authorize by regulation as proper and in conformity with the intent and purpose of this act, if such deductions are approved by the employer.

(cf: P.L.1991, c.190, s.1.)

    2. This act shall take effect immediately.

STATEMENT

    This bill would allow employees to authorize employers to withhold payments from their wages for employer-sponsored group or individual insurance or annuity programs. Currently this type of withholding is not among those statutorily authorized. This bill amends the statute listing permissible types of wage withholding to include payments for employer-sponsored insurance or annuities.