New York Laws
Article 14 - Salaries and Employee Benefits
200 - Payment of Salaries.

(1). For the payrolls covering officers and employees of the state,
except as provided in subparagraph (2) of this pargagraph: commencing
with the institutional payroll period commencing December 27, 1990, and
the administrative payroll period commencing on January 3, 1991, payment
on the payment date of the five payroll periods commencing with such
dates shall be for nine-tenths of that amount paid each payroll period
until a total of five-tenths of salary for one payroll period that would
be paid but for this subdivision has been withheld. Thereafter, starting
with the sixth payroll period after December 27, 1990, or January 3,
1991, as appropriate, payment shall be in the same manner as in effect
prior to December 27, 1990, or January 3, 1991.
(2) The provisions of subparagraph (1) of this paragraph shall apply
to officers and employees of the state subject to paragraph (1) of
subdivision b of section five of chapter 353 of the laws of 1982
commencing with the payroll period (and corresponding payment date)
immediately following the completion of the procedure for the payment of
salaries and wages established by the comptroller pursuant to such
paragraph of chapter 353 of the laws of 1982.
(3) Where salary has been withheld pursuant to this subdivision, in
lieu of such salary, an officer or employee who retires or otherwise
separates from service, or the beneficiary of an employee who dies,
shall be entitled to a lump sum payment equal to the salary so withheld
at the rate of basic annual salary in effect at the time of death,
retirement, or other separation from service for each day or part
thereof for which salary was withheld pursuant to this section, but in
no case shall such lump sum payment be less than the amount of salary
originally withheld.
(b) (1) "Officers and employees of the state" shall mean (i) officers
and employees of the executive branch (including the state university
and the senior colleges of the city university of New York); (ii)
officers and employees of the statutory or contract colleges of the
state (but in the case of a statutory or contract college for which
state payment is made by reimbursement instead of direct payroll
payment, such reimbursement shall be reduced and paid in a manner
consistent with the provisions of paragraph (a) of this subdivision);

(iii) nonjudicial officers and employees of the unified court system if
the chief administrator of the courts so elects; (iv) employees of the
senate if the temporary president of the senate so elects; (v) employees
of the assembly if the speaker of the assembly so elects; (vi) employees
of joint legislative employers if the temporary president of the senate
and the speaker of the assembly mutually so elect for all such joint
legislative employers. Any election made, pursuant to (iii), (iv), (v)
or (vi) shall be in writing and filed with the state comptroller not
later than seven days from the date of enactment of this act; in the
case of an entity described in (iii) through (vi) for which an election
is not made, other equivalent demonstrable savings shall be effected for
the fiscal year ending March 31, 1991.
(2) "Employees of the senate, assembly or a joint legislative
employer" shall be as defined in section 7-d of the legislative law
(including sections 7-a and 7-b of such law) or by any other provision
of law which classifies employees of an entity to be legislative
employees for all purposes; such term shall not include senators or
members of the assembly.
(3) "Joint legislative employer" shall mean legislative commissions,
committees, task forces, councils or similar bodies whose membership is
comprised of both senators and assembly members, or which consists of
commissioners, or the majority of whose membership is appointed by one
or more of the following: the temporary president of the senate, the
speaker of the assembly, the minority leader of the senate, and/or the
minority leader of the assembly. The temporary president of the senate
and speaker of the assembly shall be the joint legislative employer of
the employees of the legislature referred to in sections 7-a and 7-b of
the legislative law.
(c) For officers and employees hired after the effective date of this
act, the withholding of five days of salary shall be accomplished in the
same manner provided in paragraph (a) of this section provided, however,
such withholding shall be taken on the first five payment dates in which
such new employees would otherwise have received their salary.
2-b. (a) For nonjudicial officers and employees of the unified court
system: commencing with the earliest administratively feasible payroll
period (and corresponding payment date) subsequent to the date this
subdivision becomes a law, payment on the payment date of the five
payroll periods commencing thereon shall be for nine-tenths of that
amount paid each payroll period until a total of five-tenths of salary
for one payroll period that would be paid but for this provision has
been withheld. For nonjudicial officers and employees hired after the
date this subdivision becomes a law, the withholding of five days of
salary shall be accomplished in the same manner described above,
provided, however, such withholding shall be made on the first five
payment dates in which such new officers or employees would otherwise
have received their salary.
(b) Where salary has been withheld pursuant to this subdivision, in
lieu of such salary, an officer or employee who retires or otherwise
separates from service, or the beneficiary of an employee who dies,
shall be entitled to a lump sum payment equal to the salary so withheld
at the rate of basic annual salary in effect at the time of death,
retirement, or other separation from service for each day or part
thereof for which salary was withheld pursuant to this section, but in
no case shall such lump sum payment be less than the amount of salary
originally withheld.
3. (a) In any case where a state employee has, as a result of an
administrative error by the state, received salary or other compensation
payments in excess of that to which he or she was entitled, the state

will not attempt to recover such overpayment, except in those cases
described in paragraph (b) of this subdivision. Notwithstanding the
foregoing, the state will, where such overpayment is still continuing,
immediately reduce such employee's current salary so that the salary
paid to such employee prospectively is the salary which the employee is
entitled to receive.
(b) Nothing contained in paragraph (a) of this subdivision shall
prevent the state from recovering, by offset or otherwise, any
overpayment made (i) for a period when the employee was neither
performing services for the state nor on approved leave or (ii) under
circumstances where the comptroller reasonably determines that the
employee knew, or that a reasonable employee should have known, that the
salary paid to him or her was in excess of that which he or she was
entitled to receive.
4. (a) (i) Upon the written request from a state employee hired on or
before January first, two thousand twenty-three, the comptroller may
cause, in accordance with the rules and regulations promulgated pursuant
to paragraph (b) of this subdivision, such employee's net salary, or any
portion thereof designated by the employee, to be deposited directly in
a bank for any purpose to an account in the name of such employee, on
forms provided by the comptroller, and duly filed in accordance with
such regulations.
(ii) On and after January first, two thousand twenty-three, the
comptroller shall cause, in accordance with the rules and regulations
promulgated pursuant to paragraph (b) of this subdivision, a state
employee's net salary to be deposited directly in a bank for any purpose
to an account in the name of such employee, and into which such employee
has authorized such employee's net salary be deposited, on forms
provided by the comptroller, and duly filed in accordance with such
regulations. Provided, however, such employee may submit a request for
exemption from the provisions of this subparagraph on a form provided by
the comptroller.
(iii) The net salary of such state employee shall be paid in the form
of a paper check until the employee provides the account information for
a bank account in such employee's name which is authorized by the
employee for the purpose of the direct deposit of his or her salary
pursuant to this subdivision.
(iv) Nothing set forth in this subdivision shall be construed to
impede, infringe upon, or supersede an agreement providing for the
payment of salaries between the state and an employee organization
representing state officers and employees who are in positions which are
in collective negotiating units pursuant to article fourteen of the
civil service law.
(b) The comptroller is hereby authorized to promulgate reasonable
rules and regulations, as may be necessary, to administer the direct
deposit of employees' salaries. In regard to the deposit of a portion of
an employee's net salary, such regulations may establish a minimum
dollar amount and may limit the maximum number of partial deposits
allowed.
(c) Any employee who requests to have their salary deposited directly
in a bank pursuant to this section, may opt out of receiving a paper pay
stub and may instead receive electronic confirmation of the information
that would otherwise be included in the pay stub.
(d) The comptroller is hereby authorized to promulgate reasonable
rules and regulations, as may be necessary, to administer the electronic
confirmation referenced in paragraph (c) of this subdivision. The
comptroller shall provide notice of the electronic confirmation system
in each employee's paper pay stub.
(e) As used in this subdivision, the term "bank" shall include any
financial institution which is a member of the New York automated
clearing house or any other financial institution designated by the
comptroller.
5. Notwithstanding any law to the contrary, by agreement between the
state and an employee organization entered into pursuant to article
fourteen of the civil service law, or by an interest arbitration award
binding the state and an employee organization pursuant to article
fourteen of the civil service law, or by the director of budget for
state officers and employees in the executive branch who are in
positions which are not in collective negotiating units, plans may be
established to reduce the basic annual salary, hourly rate or per diem
for any employee within the purview of such agreement, interest
arbitration award, or the budget director's authority. Any plan or plans
established under this section will be implemented when the budget
director notifies the director of the governor's office of employee
relations and delivers such plan or plans to the comptroller, at which
point the comptroller will take the necessary actions to reduce,
restore, or repay compensation, provided however, that the comptroller
must take such actions wholly within the fiscal year that such plan
requires. After the cessation of such plan, the comptroller shall
restore such salary, hourly rate or per diem to the amount in effect
immediately before the commencement of such plan.