Bill S6518A-2013

Relates to the increase in the minimum wage and provides that on each December 31st the rate shall be indexed to inflation; repealer

Relates to the increase in the minimum wage and provides that on December 31st, 2016 and each December 31st thereafter, the rate shall be indexed to inflation.

Details

Actions

  • Jun 11, 2014: PRINT NUMBER 6518A
  • Jun 11, 2014: AMEND (T) AND RECOMMIT TO LABOR
  • Jan 31, 2014: REFERRED TO LABOR

Memo

BILL NUMBER:S6518A

TITLE OF BILL: An act to amend the labor law and the municipal home rule law, in relation to the minimum wage and repealing subdivision 6 of section 652 of such law relating thereto

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to accelerate the increase of the statutory minimum wage and to increase the cash wage for food service workers, to index these wages to inflation, and to authorize localities to Increase their local minimum wage up to thirty percent more than the state's minimum wage.

SUMMARY OF SPECIFIC PROVISIONS:

Sections 1 and 2 of the bill would amend § 651 of the Labor Law to require that state and municipal governments and political subdivisions thereof pay their employees the statutory minimum wage.

Section 3 of the bill would amend § 652 of the Labor Law to raise the statutory minimum wage from $8.00 to $9.00 per hour on December 31, 2014, to $10.10 per hour on December 31, 2015, and index the rate to inflation on December 31, 2016, and each year thereafter. Section 3 would also increase the cash wage for food service workers from $5 to $5.50 immediately, to $6.20 on December 31, 2014, to $6.95 on December 31, 2015, and index the rate to inflation on December 31, 2016, and each year thereafter.

Section 4 of the bill would repeal subdivision 6 of § 652 of the Labor Law, which was enacted in the SFY 2013-14 budget, that provided that the cash wage for food service workers would be modified through a wage order.

Section 5 of the bill would amend § 653 of the Labor Law to clarify that service employees paid in accordance with the hospitality wage order are included in the wage board process that takes place upon a change to the statutory minimum wage.

Section 6 of the bill would amend § 11 of the Municipal Home Rule Law to allow counties and cities to adopt certain local wage laws that supersede labor laws.

Section 7 of the bill would amend § 654 of the Labor Law to authorize counties and cities to raise their local minimum wage up to thirty percent higher than the state's minimum wage.

Section 8 of the bill would amend § 662 of the Labor Law to provide that employers would be liable for penalties associated with failure to pay the local minimum wage.

Section 9 of the bill provides for an immediate effective date.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:

Present law provides that the minimum wage shall be increased to $8.75 on December 31, 2014 and $9.00 on December 31, 2015. This bill

accelerates the increase to require a minimum wage of $9.00 on December 31, 2014, provides for another minimum wage increase to $10.10 on December 31, 2015, and indexes the wage to inflation. Current law does not provide for statutory increases to the cash wage paid to food service workers and service employees under the hospitality wage order. Current law does not authorize localities to establish higher minimum wages.

JUSTIFICATION:

When Congress enacted the Fair Labor Standards Act (FLSA) in 1938 and prescribed a minimum wage, it was intended to ensure that low-wage workers would earn, at the very least, a liveable wage. Over the years, data has shown that the federal government's actions to preserve this standard against the erosive power of inflation have fallen decades behind. If the 1968 minimum wage of $1.50 had been indexed to inflation, it would have the purchasing power of over $10.00 today. While the recent increase to the minimum wage to $8.00 is a start, more can be done to help families meet the rising costs of food and shelter, health care, transportation, child care and other necessities.

This bill ensures that the state's minimum wage will keep pace with inflation and also recognizes that the state is diverse, with the cost of living varying by region. Permitting localities to increase the minimum wage will enable localities to establish adequate wages for working families.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None known.

EFFECTIVE DATE:

Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6518--A IN SENATE January 31, 2014 ___________
Introduced by Sens. ESPAILLAT, STEWART-COUSINS, AVELLA, BRESLIN, DILAN, GIANARIS, HOYLMAN, KENNEDY, KRUEGER, MONTGOMERY, PERALTA, PERKINS, RIVERA, SERRANO, SQUADRON, TKACZYK -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee AN ACT to amend the labor law and the municipal home rule law, in relation to the minimum wage and repealing subdivision 6 of section 652 of such law relating thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph (n) of subdivision 5 of section 651 of the labor law, as amended by chapter 481 of the laws of 2010, is amended to read as follows: (n) by [a] THE federal[, state or municipal] government [or political subdivision thereof]. The exclusions from the term "employee" contained in this subdivision shall be as defined by regulations of the commis- sioner; or S 2. Subdivision 6 of section 651 of the labor law, as amended by chapter 281 of the laws of 2002, is amended to read as follows: 6. "Employer" includes any individual, partnership, association, corporation, limited liability company, business trust, legal represen- tative, STATE OR MUNICIPAL GOVERNMENT OR POLITICAL SUBDIVISION THEREOF, or any organized group of persons acting as employer. S 3. Subdivisions 1, 4 and 5 of section 652 of the labor law, subdivi- sion 1 as amended by section 1 of part P of chapter 57 of the laws of 2013 and subdivisions 4 and 5 as amended by chapter 747 of the laws of 2004, are amended to read as follows: 1. Statutory. Every employer shall pay to each of its employees for each hour worked a wage of not less than: $4.25 on and after April 1, 1991, $5.15 on and after March 31, 2000, $6.00 on and after January 1, 2005, $6.75 on and after January 1, 2006,
$7.15 on and after January 1, 2007, $8.00 on and after December 31, 2013, [$8.75 on and after December 31, 2014,] $9.00 on and after December 31, [2015] 2014, $10.10 ON AND AFTER DECEMBER 31, 2015 AND ON AND AFTER DECEMBER 31, 2016 AND ON EACH FOLLOWING DECEMBER THIRTY-FIRST, THE COMMISSIONER SHALL CALCULATE AND ESTABLISH AN ADJUSTED MINIMUM WAGE RATE BY INCREASING THE THEN CURRENT MINIMUM WAGE RATE BY THE RATE OF INFLATION FOR THE MOST RECENT TWELVE MONTH PERIOD AVAILABLE PRIOR TO EACH DECEMBER THIRTY-FIRST USING THE CONSUMER PRICE INDEX-ALL URBAN CONSUMERS, CPI-U, OR A SUCCES- SOR INDEX AS CALCULATED BY THE UNITED STATES DEPARTMENT OF LABOR, IF SUCH RATE OF INFLATION IS GREATER THAN ZERO PERCENT, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be estab- lished in accordance with the provisions of this article. 4. Notwithstanding subdivisions one and two of this section, the wage for an employee who is a food service worker receiving tips shall be a cash wage of at least three dollars and thirty cents per hour on or after March thirty-first, two thousand; three dollars and eighty-five cents on or after January first, two thousand five; at least four dollars and thirty-five cents on or after January first, two thousand six; [and] at least four dollars and sixty cents on or after January first, two thousand seven; AT LEAST FIVE DOLLARS AND FIFTY CENTS ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND FOURTEEN THAT AMENDED THIS SUBDIVISION; AND AT LEAST SIX DOLLARS AND TWENTY CENTS ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN; AND AT LEAST SIX DOLLARS AND NINETY-FIVE CENTS ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN AND ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN AND ON EACH FOLLOWING DECEMBER THIR- TY-FIRST, THE COMMISSIONER SHALL CALCULATE AND ESTABLISH AN ADJUSTED CASH WAGE RATE BY INCREASING THE THEN CURRENT CASH WAGE RATE BY THE RATE OF INFLATION FOR THE MOST RECENT TWELVE MONTH PERIOD AVAILABLE PRIOR TO EACH DECEMBER THIRTY-FIRST USING THE CONSUMER PRICE INDEX-ALL URBAN CONSUMERS, CPI-U, OR A SUCCESSOR INDEX AS CALCULATED BY THE UNITED STATES DEPARTMENT OF LABOR, IF SUCH RATE OF INFLATION IS GREATER THAN ZERO PERCENT, provided that the tips of such an employee, when added to such cash wage, are equal to or exceed the minimum wage in effect pursu- ant to subdivision one of this section and provided further that no other cash wage is established pursuant to section six hundred fifty- three of this article. In the event the cash wage payable under the Fair Labor Standards Act (29 United States Code Sec. 203 (m), as amended), is increased after enactment of this subdivision, the cash wage payable under this subdivision shall automatically be increased by the propor- tionate increase in the cash wage payable under such federal law, and will be immediately enforceable as the cash wage payable to food service workers under this article. 5. Notwithstanding subdivisions one and two of this section, meal and lodging allowances for a food service worker receiving a cash wage amounting to three dollars and thirty cents per hour on or after March thirty-first, two thousand; three dollars and eighty-five cents on or after January first, two thousand five; four dollars and thirty-five cents on or after January first, two thousand six; [and] four dollars and sixty cents on or after January first, two thousand seven; FIVE DOLLARS AND FIFTY CENTS ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND FOURTEEN THAT AMENDED THIS SUBDIVISION; SIX DOLLARS AND TWENTY CENTS ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND
FOURTEEN; SIX DOLLARS AND NINETY-FIVE CENTS ON OR AFTER DECEMBER THIR- TY-FIRST, TWO THOUSAND FIFTEEN AND ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND SIXTEEN AND ON EACH FOLLOWING DECEMBER THIRTY-FIRST, THE COMMISSIONER SHALL CALCULATE AND ESTABLISH AN ADJUSTED CASH WAGE RATE BY INCREASING THE THEN CURRENT CASH WAGE RATE BY THE RATE OF INFLATION FOR THE MOST RECENT TWELVE MONTH PERIOD AVAILABLE PRIOR TO EACH DECEMBER THIRTY-FIRST USING THE CONSUMER PRICE INDEX-ALL URBAN CONSUMERS, CPI-U, OR A SUCCESSOR INDEX AS CALCULATED BY THE UNITED STATES DEPARTMENT OF LABOR, IF SUCH RATE OF INFLATION IS GREATER THAN ZERO PERCENT, shall not increase more than two-thirds of the increase required by subdivision two of this section as applied to state wage orders in effect pursuant to subdivision one of this section. S 4. Subdivision 6 of section 652 of the labor law is REPEALED. S 5. Subdivision 2 of section 653 of the labor law, as added by chap- ter 14 of the laws of 2000, is amended to read as follows: (2) The commissioner shall, within six months after enactment of any change in the statutory minimum wage set forth in subdivision one of section six hundred fifty-two of this article, appoint a wage board to inquire and report and recommend any changes to wage orders governing wages payable to food service workers AND SERVICE EMPLOYEES PAID IN ACCORDANCE WITH PART 146 OF TITLE 12 OF THE NEW YORK STATE COMPILATION OF CODES, RULES AND REGULATIONS. Such wage board shall be established consistent with the provisions of subdivision one of section six hundred fifty-five of this article, except the representatives of the employees shall be selected upon the nomination of the state American Federation of Labor/Congress of Industrial Organizations; and provided, further, that the representatives of the employers shall be selected upon the nomination of the New York State Business Council. Any wage order authorizing a lesser wage than the previously and statutorily mandated minimum wage for such employees shall be reviewed by the wage board to ascertain at what level such wage order is sufficient to provide adequate maintenance and to protect the health and livelihood of employ- ees subject to such a wage order after a statutory increase in the mandated minimum wage. S 6. Paragraph f of subdivision 1 of section 11 of the municipal home rule law, as amended by chapter 21 of the laws of 1992, is amended to read as follows: f. Applies to or affects any provision of paragraph (c) of subdivision one of section 8-100 of the election law, the labor law, EXCEPT AS PROVIDED IN SUBDIVISION TWO OF SECTION SIX HUNDRED FIFTY-FOUR OF THE LABOR LAW, sections two, three and four of chapter one thousand eleven of the laws of nineteen hundred sixty-eight, entitled "An act in relation to the maximum hours of labor of certain municipal and fire district firemen and the holidays of firemen and policemen, repealing certain sections of the labor law relating thereto, and to amend the municipal home rule law, in relation thereto," as amended, the volunteer [firemen's] FIREFIGHTERS' benefit law, or the [workmen's] WORKERS' compensation law or changes any provision of the multiple residence law or the multiple dwelling law, except that in a city of one million persons or more, the provisions of local law for the enforcement of the housing code which is not less restrictive than the multiple dwelling law may be applied in the enforcement of the multiple dwelling law. S 7. Section 654 of the labor law, as added by chapter 619 of the laws of 1960, is amended to read as follows: S 654. Basis of changes in minimum wage. 1. In establishing minimum wages and regulations for any occupation or occupations pursuant to the
provisions of the following sections of this article, the wage board and the commissioner shall consider the amount sufficient to provide adequate maintenance and to protect health and, in addition, the wage board and the commissioner shall consider the value of the work or clas- sification of work performed, and the wages paid in the state for work of like or comparable character. 2. COUNTIES AND CITIES ARE AUTHORIZED TO ADOPT MINIMUM STANDARDS RELATING TO WAGES, OR MECHANISMS FOR THE ENFORCEMENT THEREOF, THAT ARE AT LEAST AS FAVORABLE TO EMPLOYEES AS THE MINIMUM STANDARDS APPLICABLE UNDER THIS ARTICLE, PROVIDED THAT ANY MINIMUM WAGE ENACTED PURSUANT TO THIS AUTHORITY FOR ANY CLASSIFICATION OF EMPLOYEES SHALL NOT BE MORE THAN THIRTY PERCENT HIGHER THAN THE MINIMUM WAGE ESTABLISHED PURSUANT TO THIS ARTICLE AND ARTICLE NINETEEN-A OF THIS CHAPTER. ANY SUCH STANDARDS MAY ALSO BE ENFORCED BY THE COMMISSIONER USING ANY AND ALL ENFORCEMENT METHODS PERMITTED BY THIS CHAPTER FOR ENFORCEMENT OF WAGE STANDARDS AND PAYMENT. S 8. Subdivision 1 of section 662 of the labor law, as amended by chapter 564 of the laws of 2010, is amended to read as follows: 1. Failure to pay minimum wage or overtime compensation. Any employer or his or her agent, or the officer or agent of any corporation, part- nership, or limited liability company, who pays or agrees to pay to any employee less than the wage applicable under this article, INCLUDING ANY MINIMUM WAGE ESTABLISHED BY A COUNTY OR CITY, shall be guilty of a misdemeanor and upon conviction therefor shall be fined not less than five hundred nor more than twenty thousand dollars or imprisoned for not more than one year, and, in the event that any second or subsequent offense occurs within six years of the date of conviction for a prior offense, shall be guilty of a felony for the second or subsequent offense, and upon conviction therefor, shall be fined not less than five hundred nor more than twenty thousand dollars or imprisoned for not more than one year plus one day, or punished by both such fine and imprison- ment, for each such offense. Each payment to any employee in any week of less than the wage applicable under this article shall constitute a separate offense. S 9. This act shall take effect immediately.

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