How New York’s Minimum Wage Law Affects Your Credit Union

January 7, 2014 at 7:31 am Leave a comment

On December 31st, New York’s minimum wage increased to $8.00 an hour. Even if you pay your employees more than this minimum, your credit union’s operations have been directly affected by this increase whether or not you realize it.

New York law exempts an amount equal to 240 times the state or federal minimum wage — whichever is higher — from levy and restraint. Remember, this is a baseline number for those members who don’t have exempted funds electronically deposited into their account. That number is adjusted for inflation every three years. This means that as of December 31st, members have at least $1,920 exempt from a restraining or levy notice.

I haven’t seen any official notice on this increase from the Department of Financial Services, but something tells me that you will have impacted members cognizant of this increase irrespective of whether or not New York State gets the word out. As I have said in previous blogs, New York’s levy and restraint exemptions are very often the subject of compliance inquiries. This is, in part, a reflection of the fact that they impact both state and federal credit unions, but mainly because, as a review of the statute will indicate, there are different trip wires for your credit union to keep in mind whenever the collector comes calling.

On that note, your faithful blogger, who stayed up a little too late watching the Auburn-Florida State Game last night, wishes you all a pleasant day.

Entry filed under: Compliance, General, New York State, Regulatory. Tags: , , .

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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