NY State Senate Bill 2011-S6413

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 06, 2012	referred to labor

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2011-S6413 (ACTIVE) - Details

See Assembly Version of this Bill:: A9148
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§651 & 652, Lab L
Versions Introduced in 2013-2014 Legislative Session:: A38

2011-S6413 (ACTIVE) - Summary

Relates to the minimum wage and makes technical changes to the labor law relating thereto.

2011-S6413 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6413

TITLE OF BILL:

An act
to amend the labor law, in relation to the
minimum wage and making technical corrections relating thereto

PURPOSE OR GENERAL IDEA OF BILL:

This bill proposes to raise the statutory minimum wage from $7.25 to
$8.50 per hour on January 1, 2013 and thereafter. Further, on each
January 1st thereafter, the wage rate shall be indexed to reflect the
rate of inflation.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Labor Law section 651 to require the state,. local
governments or political subdivisions thereof, to pay their employees
the statutory minimum wage under article nineteen of the Labor Law.

Section 2: This provision makes a conforming change to the definition
of "employer" in section 651 to include a state or municipal
government or a political subdivision thereof.

Section 3: Amends subdivisions 1, 4 and 5 of Labor Law section 652 to

provide that effective January 1, 2013 the statutory minimum wage
shall be $8.50 per hour, and for food service workers receiving a
minimum cash wage, including those for which employers are authorized
to make wage deductions for meals and lodging, $5.86 per hour. It
would also require that beginning on January 1, 2014 and annually
thereafter on such date, the minimum wage shall be indexed to
inflation by the commissioner of the Department of Labor.

Section 4 is the effective date.

JUSTIFICATION:

When Congress enacted the Federal 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.
However, 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.

According to the United States Bureau of Labor Statistics, the
nation's effective minimum wage peaked in 1968 at the 2010
dollar equivalent of $9.60.
Additionally, if the 1968 minimum wage of $1.50 had been indexed to
inflation, it would have had the purchasing power of $10.03 today. By
this comparison, it is clear that the current minimum wage of $7.25
is not nearly sufficient to meet the rising costs of food and
shelter, let alone provide for healthcare, transportation, child care
and other necessities for New Yorkers and their families. The annual
income for a NYS full-time minimum wage worker has not exceeded the
federal poverty threshold since 1979.


Further, the annual gap between the stated minimum wage and the
effective minimum continues to grow steadily.

In 2010, there were over 264,000 people in NYS earning at or below the
minimum wage, many of whom reside within the New York City
metropolitan area, the area ranked as having the highest cost of
living in the nation. Historically, the highest proportion (14%) of
workers that earn at or below the federal minimum wage was in service
occupations, with nearly half of that number being employed in the
leisure and hospitality industry, primarily in restaurants and other
food services. With a relative cost of living that far exceeds the
national average it is important that the minimum wage standards in
this State be reflective of these facts.

The guarantee of a livable wage not only benefits workers and their
families, it is also a direct benefit for the State's overall economy
as it is widely proven in consumer trends that lower wage earners are
more likely to reinvest any disposable income into their local
businesses.
Currently, there are ten states whose minimum wages are statutorily
required to be adjusted annually, to reflect changes in the consumer
price index, and three with proposals pending to do so. This
safeguard ensures that despite delays in Congressional action to
increase the minimum wage under the FLSA, the wage laws in NYS will
continue to provide for its residents.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.

EFFECTIVE DATE:
Immediate.

2011-S6413 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6413

                            I N  S E N A T E

                            February 6, 2012
                               ___________

Introduced  by  Sen.  KLEIN  -- 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  and
  making technical corrections 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, 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,
  $8.50 ON AND AFTER JANUARY 1, 2013
  AND ON AND AFTER JANUARY 1, 2014 AND ON EACH FOLLOWING JANUARY  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD11388-05-2

S. 6413                             2

EACH JANUARY 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,
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.
  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; AND AT  LEAST  FIVE  DOLLARS  AND  EIGHTY-SIX
CENTS  ON OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN; AND ON OR AFTER
JANUARY FIRST, TWO THOUSAND  FOURTEEN  AND  ON  EACH  FOLLOWING  JANUARY
FIRST,  THE COMMISSIONER SHALL CALCULATE AND ESTABLISH AN ADJUSTED MINI-
MUM 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 JANUARY 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 EIGHTY-SIX CENTS ON OR AFTER MARCH THIRTY-FIRST,  TWO  THOU-
SAND THIRTEEN; AND ON OR AFTER MARCH THIRTY-FIRST, TWO THOUSAND FOURTEEN
AND  ON EACH FOLLOWING MARCH THIRTY-FIRST, THE COMMISSIONER SHALL CALCU-
LATE 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 MARCH 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. This act shall take effect immediately.

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Senate Bill S6413

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

co-Sponsors

2011-S6413 (ACTIVE) - Details

2011-S6413 (ACTIVE) - Summary

2011-S6413 (ACTIVE) - Sponsor Memo

2011-S6413 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S6413

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Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

co-Sponsors

2011-S6413 (ACTIVE) - Details

2011-S6413 (ACTIVE) - Summary

2011-S6413 (ACTIVE) - Sponsor Memo

2011-S6413 (ACTIVE) - Bill Text download pdf

Comments