Angello v. Labor Ready, Inc.

Labor Ready Worker Wins Case Over Illegal Fee Deductions

This case involved Labor Ready, a temporary staffing company, charging workers something called "CDM fees" by deducting money directly from their paychecks. A worker named Angello challenged these deductions, arguing they were illegal under New York state law.

New York's highest court, the Court of Appeals, ruled in favor of the worker. The court determined that Labor Ready's practice of taking CDM fees from workers' paychecks violated New York Labor Law, which strictly limits what employers can deduct from wages. The judges found these fees were not legally permitted deductions and were too closely tied to the wage payment process to be allowed.

What This Means for Workers:

This ruling strengthens protections for workers in New York by confirming that employers cannot simply deduct fees from paychecks without legal justification. Workers should know that New York law severely restricts what can be taken from their wages - employers cannot create their own fee structures and automatically deduct money. If you notice unexplained deductions on your paycheck, this case shows that challenging such practices can be successful. Workers have strong rights regarding wage payments in New York.