Bill S7034-2013

Relates to the minimum wage for food service workers receiving tips

Relates to the minimum wage for food service workers receiving tips.

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  • Apr 21, 2014: REFERRED TO LABOR

Memo

BILL NUMBER:S7034

TITLE OF BILL: An act to amend the labor law, in relation to the minimum wage for food service workers receiving tips

PURPOSE:

To increase the New York State minimum wage for food service workers receiving tips to equal seventy percent (70%) of the state's standard minimum wage.

SUMMARY OF PROVISIONS:

§ 1. Subdivision 4 of section 652 of the labor law, as amended by chapter 747 of the laws of 2004 is amended to raise the New York State minimum for food service workers receiving tips to equal seventy percent (70%) of the state's standard minimum wage.

§ 2. This act shall take effect on the ninetieth day after it shall have become a law.

JUSTIFICATION:

Recently the Chairman of the President's Council of Economic Advisers, declared that the minimum wage has not kept up with inflation. A minimum wage that does not keep up with inflation forces employees working at or near the minimum wage to live in poverty even though they may work full-time.

In New York the current minimum wage for food service employees is $5.00 per hour. While these employees receive tips in addition to their wages, many times those wages plus tips do not even add up to the state minimum wage. According to Restaurant Opportunities Centers United, a restaurant workers coalition, restaurant workers are the largest group of full-time workers living in poverty.

RaisetheMinimumWage.com, a project of the National Employment Law Project states, "Tips are notoriously erratic, varying from shift to shift and from season to season. Tipped workers are hit especially hard during economic downturns, as financially squeezed consumers often have no choice but to leave smaller tips or cut back on spending at diners or salons altogether. A higher tipped minimum wage would help cushion the impact of these fluctuations and ensure a guaranteed basic income for tipped workers." Raising the tipped minimum wage to 70 percent of the full minimum wage will ensure that the bulk of tipped workers' income is paid directly by their employers rather than being made up by tips. RaisetheMinimumWage.com further stated, "Providing tipped workers a stable base income paid directly by their employers is a key step for improving the economic security and working conditions of low-paid tipped workers." This bill would provide such stability for food service employees and allow them to work full-time and be able to support themselves.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

No Cost to State.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 7034 IN SENATE April 21, 2014 ___________
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT to amend the labor law, in relation to the minimum wage for food service workers receiving tips THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 4 of section 652 of the labor law, as amended by chapter 747 of the laws of 2004, is amended to read as follows: 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[, provided that the tips of such an employee, when added to such cash wage, are equal to or exceed]; AND AT LEAST SEVENTY PERCENT OF the minimum wage in effect pursuant 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] OR SEVENTY PERCENT OF THE MINIMUM WAGE IN EFFECT IN THE APPLICABLE MUNI- CIPALITY ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN. 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 proportionate 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. S 2. This act shall take effect immediately.

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