senate Bill S5792A

Amended

Relates to the number of hours employees may work in the hospitality industry

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 14 / Jun / 2013
    • REFERRED TO LABOR
  • 18 / Jun / 2013
    • AMEND (T) AND RECOMMIT TO LABOR
  • 18 / Jun / 2013
    • PRINT NUMBER 5792A
  • 08 / Jan / 2014
    • REFERRED TO LABOR
  • 27 / Jan / 2014
    • 1ST REPORT CAL.57
  • 28 / Jan / 2014
    • 2ND REPORT CAL.
  • 03 / Feb / 2014
    • ADVANCED TO THIRD READING
  • 03 / Mar / 2014
    • AMENDED ON THIRD READING (T) 5792B
  • 19 / Mar / 2014
    • PASSED SENATE
  • 19 / Mar / 2014
    • DELIVERED TO ASSEMBLY
  • 19 / Mar / 2014
    • REFERRED TO LABOR

Summary

Relates to the number of hours employees may work in the hospitality industry.

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Bill Details

Versions:
S5792
S5792A
S5792B
Legislative Cycle:
2013-2014
Current Committee:
Assembly Labor
Law Section:
Labor Law
Laws Affected:
Add ยง196-e, Lab L
Versions Introduced in 2013-2014 Legislative Cycle:
A8016

Votes

10
1
10
Aye
1
Nay
5
aye with reservations
0
absent
0
excused
0
abstained
show Labor committee vote details

Sponsor Memo

BILL NUMBER:S5792A

TITLE OF BILL: An act to amend the labor law, in relation to the
number of hours employees may work in certain hospitality
establishments

SUMMARY OF SPECIFIC PROVISIONS:

This would add a new section 196-e to the Labor Law and codify federal
labor law.

JUSTIFICATION:

Under the Federal Labor Standards Act (ELSA), employees covered by the
Act must receive overtime pay for hours worked in excess of 40 hours
in a workweek at a rate of at least 1.5x their regular rate of pay.
Their "regular rate of Pay" includes commissions.

Under FLSA Section 7(i), there is an exemption for calculating
overtime for workers who receive a "commission" gratuity (an automatic
gratuity) when certain conditions apply. That exemption applies when
the employee is employed by a retail or service establishment; the
employee's regular rate of pay exceeds 1.5x the applicable minimum
wage for every hour worked in a workweek in which overtime was paid;
and more than half the employee's total earnings in a representative
period consist of commissions. If the exemption applies, the employees
are still compensated at the overtime rate for the hourly part of
their pay, but the calculation of the commission gratuity part of
their pay is exempted and remains the same.

In New York, this federal exemption was never written into law, but it
was adopted by some wage orders. However, the Hotel Industry wage
order is silent as to the ELSA Section 7(1) exemptions. This bill
would codify the federal exemption into New York State law. This will
apply only to hospitality workers, and will affect only those making
approximately over three times the minimum wage.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This would take effect immediately, provided however, that this act
shall be deemed to have been in full force and effect with respect to
any employers who paid overtime pursuant to a collective bargaining
agreement in existence prior to the daze on which this act shall have
become a law.

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

                                 5792--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 14, 2013
                               ___________

Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Labor  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend  the  labor  law,  in relation to the number of hours
  employees may work in certain hospitality establishments

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The labor law is amended by adding a new section 196-e to
read as follows:
  S 196-E. WORKWEEK HOURS  IN  CERTAIN  HOSPITALITY  ESTABLISHMENTS.  NO
EMPLOYER  SHALL BE DEEMED TO HAVE VIOLATED ANY STATUTE, RULE, REGULATION
OR ORDER BY EMPLOYING ANY EMPLOYEE OF A HOSPITALITY ESTABLISHMENT FOR  A
WORKWEEK IN EXCESS OF THE APPLICABLE WORKWEEK SPECIFIED THEREIN IF:
  (A)  THE  REGULAR RATE OF PAY OF SUCH EMPLOYEE IS IN EXCESS OF ONE AND
ONE-HALF TIMES THE MINIMUM HOURLY RATE APPLICABLE TO SUCH EMPLOYEE; AND
  (B) MORE THAN HALF THE EMPLOYEE'S COMPENSATION  FOR  A  REPRESENTATIVE
PERIOD,  WHICH  SHALL NOT BE LESS THAN ONE MONTH, REPRESENTS COMMISSIONS
ON GOODS OR SERVICES. IN  DETERMINING  THE  PROPORTION  OF  COMPENSATION
REPRESENTING COMMISSIONS, ALL EARNINGS RESULTING FROM THE APPLICATION OF
A  BONA  FIDE  COMMISSION  RATE  SHALL BE DEEMED COMMISSIONS ON GOODS OR
SERVICES WITHOUT REGARD TO WHETHER THE COMPUTED COMMISSIONS  EXCEED  THE
DRAW OR GUARANTEE.
  S  2.  This act shall take effect immediately, provided, however, that
this act shall be deemed to have been in  full  force  and  effect  with
respect to any employer who paid overtime prior to the effective date of
this act.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11508-05-3

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