Enact the fair wage act; raises the minimum wage and allows localities to raise minimum wages by up to an additional thirty percent.
TITLE OF BILL: An act to amend the municipal home rule law and the labor law, in relation to enacting the fair wage act, raising the minimum wage and allowing localities to raise minimum wages by up to an additional thirty percent
PURPOSE: To increase the New York State minimum wage to $10.10 per hour effective on and after July 1, 2015, create a yearly cost of living adjustment beginning each year on and after July 1, 2016, and allow localities to set a minimum wage of up to 30% above the statewide minimum wage.
SUMMARY OF PROVISIONS: Section 1- Bill title.
Section 2- Amends the municipal home rule law to provide for the exception pursuant to the new provisions of labor law relating to local control over minimum wage rates.
Section 3- Amends section 652 of the labor law to increase the minimum wage to $9 per hour on and after September 1, 2014 and then to $10.10 per hour on and after July 1, 2015. On and after July 1, 2016, and every year thereafter, the minimum wage will be increased by the rate of inflation as measured by the Consumer Price Index-All Urban Consumers (CPI-U) or a successor index used by the U.S. Department of Labor.
Section 4- Amends section 654 of the labor law to allow a county, city, town, village, or public benefit corporation establish and enforce a higher minimum wage standard than the statewide minimum wage within their own borders, provided that no local minimum wage greater than 30% more than the statewide minimum would could be enacted.
Section 5- Amends section 662 of the labor law to provide that an employer who fails to adhere to a local minimum wage shall be guilty of violating the labor law in the same manner as a violation of the statewide minimum wage.
Section 6- Provides that the effective date shall be immediately.
JUSTIFICATION: While New York adopted a minimum wage increase in 2013 from $7.25 to $8.00 per hour in 2014 and up to $9.00 per hour at the end of 2015, this increase will not provide for an actual living wage throughout the state. In the intervening year, other high-cost states such as California, Connecticut, Vermont, Maryland and Hawaii have raised their minimum wages to $10.00 or more, and others like Massachusetts and Illinois are expected to follow shortly. Many economic advisors and officials at the state and federal level, including President Obama, have urged increasing the minimum wage to $10.10 per hour to bring wages more in line with the past rates of inflation and increase the standards of living for those who are paid the minimum wage.
Similarly, the current minimum wage does not allow for regional variations that take into account the varied costs of living in the state. One size does not fit all in a state that has an estimated 43% cost of living difference between the most expensive and least
expensive parts of the state. Other states such as California, Maryland, Washington State, New Mexico and Illinois have found that allowing high cost regions to supplement the state minimum wage with higher local rates allows communities to address local economic needs and living costs.
This bill will address both of these issues by raising the minimum wage to in two steps to $10.10 per hour by July 1, 2015 and indexing future yearly increases to inflation. Local governments will also be given the power to raise the minimum wage within their own boundaries to no more than 30% above the statewide minimum wage. Taken together, this bill will increase the purchasing power of workers, aid small businesses, and allow regional variations that will support the unique character of the state.
LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 7772 IN SENATE June 6, 2014 ___________Introduced by Sens. SANDERS, STEWART-COUSINS, GIANARIS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the municipal home rule law and the labor law, in relation to enacting the fair wage act, raising the minimum wage and allowing localities to raise minimum wages by up to an additional thirty percent THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "fair wage act". S 2. 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 3. Subdivision 1 of section 652 of the labor law, as amended by section 1 of part P of chapter 57 of the laws of 2013, is 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 THE WAGE AS MAY BE ESTABLISHEDEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15512-02-4 S. 7772 2
BY FEDERAL LAW PURSUANT TO 29 U.S.C. SECTION 206 OR ITS SUCCESSORS; OR SUCH OTHER WAGE AS MAY BE ESTABLISHED IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE; OR: $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, ]$9.00 ON AND AFTER SEPTEMBER 1, 2014, [$9.00 on and after December 31, 2015, 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 established in accordance with the provisions of this article]$10.10 ON AND AFTER JULY 1, 2015, WHICHEVER IS GREATER. ON AND AFTER JULY 1, 2016 AND ON EACH FOLLOWING JULY 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 JULY FIRST USING THE CONSUMER PRICE INDEX-ALL URBAN CONSUMERS, CPI-U, OR A SUCCESSOR INDEX AS CALCULATED BY THE UNITED STATES DEPART- MENT OF LABOR, IF SUCH RATE OF INFLATION IS GREATER THAN ZERO PERCENT. S 4. 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, CITIES, TOWNS, VILLAGES AND PUBLIC BENEFIT CORPORATIONS ARE AUTHORIZED TO ADOPT MINIMUM STANDARDS RELATING TO WAGES, HOURS, OR OTHER WORKING CONDITIONS, 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 5. 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, CITY, TOWN, VILLAGE, OR PUBLIC BENEFIT CORPORATION, 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 withinS. 7772 3
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 imprisonment, for each such offense. Each payment to any employee in any week of less than the wage applica- ble under this article shall constitute a separate offense. S 6. This act shall take effect immediately.