Legal Question in Business Law in New York

Re: Error in Brokerage account

No. There are only limited circumstances where an employer may require an employee to reimburse for a loss.

NY Labor Law section 193 sets forth the following:

"1. No employer shall make any deduction from the wages of an employee, except deductions which:

a. are made in accordance with the provisions of any law or any rule or regulation issued by any governmental agency; or

b. are expressly authorized in writing by the employee and are for the benefit of the employee; provided that such authorization is kept on file on the employer's premises. Such authorized deductions shall be limited to payments for insurance premiums, pension or health and welfare benefits, contributions to charitable organizations, payments for United States bonds, payments for dues or assessments to a labor organization, and similar payments for the benefit of the employee.

2. No employer shall make any charge against wages, or require an employee to make any payment by separate transaction unless such charge or payment is permitted as a deduction from wages under the provisions of subdivision one of this section.

3. Nothing in this section shall justify noncompliance with article three-A of the personal property law relating to assignment of earnings, nor with any other law applicable to deductions from wages."

Based on your qustion, requirement that employer deduct the amount from your wages would violate the NY Labor law.

Mike.

Re: Error in Brokerage account

While Michael is correct in his selection of NY labor law. Financial services companies have and will continue to offset client losses due to broker errors through a charge back process. As a former compliance officer, I have had the distinct requirement to do just that. As a former broker, I too have been whacked with a loss due to either a customer not paying or an error due to my negligence.

If you can prove that the error was not due to your actions, but to the actions of another you should be able to convince the proper people that you are not responsible. Additionally, if you are working as you described, you need to check your employment agreement if you have expressly authorized such charge backs.

One last item; if the senior broker is charging you back then you need to take the issue up with his seniors as he is likely not authorized to require such action.

If you wish to discuss this further, please let me know. I can be reached via email.

Good luck.