senate Bill S5792B

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

See Assembly Version of this Bill:
A8016B
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

Sponsor Memo

BILL NUMBER:S5792B

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

PURPOSE OR GENERAL IDEA OF BILL: To provide clarification regarding
overtime exemptions for certain hospitality industry employees who
receive compensation based on service charges, mandatory gratuities or
similar charges.

SUMMARY OF SPECIFIC PROVISIONS: This would add a new section 196-e to
the Labor Law.

JUSTIFICATION: This legislation would incorporate into state law an
exemption to overtime compensation requirements for certain
hospitality industry (hotel and restaurant) workers.

Under the Federal Fair Labor Standards Act (FLSA), employees must
receive overtime pay for hours worked in excess of 40 hours in a work
week at a rate of at least 1.5 times their regular rate of pay, and
this provision is incorporated in New York State Labor regulations (12
NYCRR 146-1.4). However, the FLSA provides an exemption from the
obligation to pay overtime to workers if:

(i) they are employed by a retail or service establishment; and

(ii) their regular rate of pay exceeds 1.5 times the applicable
minimum hourly wage rate in the work week in which overtime hours are
worked; and

(iii) more than half the employee's total earnings in a representative
period consist of commissions.

New York State Labor regulations do not provide such an exemption.
This legislation would provide for an exemption comparable to the
federal exemption in New York State law for hospitality industry
workers. This exemption would have no effect on most employees in the
hospitality industry who will continue to receive overtime pay as they
currently do. Only employees whose regular rate of pay is at least 2
times the statutory minimum wage (i.e., $16.00 per hour in 2014) and
who receive at least 50% of their remuneration from service charges,
mandatory gratuities or similar charges would be exempt from statutory
overtime. These include employees employed in, or performing the work
of, the classifications of banquet servers, banquet, captains, banquet
bartenders, room service servers, room service captains, room service
order takers, and pages. Without application of the exemption,
compensation for these employees would be substantially increased,
making banquet operations unsustainable for many hotels and
restaurants. This would jeopardize the entire banquet industry,
adversely affecting not only servers and captains, but cooks, stewards
and housepersons, and the rewarding jobs that these team members rely
on.

Incorporating an exemption comparable to the federal exemption will
ensure equitable compensation for employees receiving compensation in
addition to their hourly rate of pay and allow hospitality industry
employers to continue banquet operations.


LEGISLATIVE HISTORY: 2013 - died in Labor Committee in both Houses.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: 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 employee in the hospitality industry who
received compensation consistent with section 1 of this Act prior to
the effective date of this act.

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

                                 5792--B
    Cal. No. 57

                       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 -- recommitted to the Committee on Labor in accord-
  ance with Senate Rule 6,  sec.  8  --  reported  favorably  from  said
  committee,  ordered  to  first  and  second report, ordered to a third
  reading, amended and ordered reprinted, retaining  its  place  in  the
  order of third reading

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

  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 THE HOSPITALITY INDUSTRY. NO EMPLOYER SHALL
BE DEEMED TO HAVE VIOLATED ANY STATUTE, RULE,  REGULATION  OR  ORDER  BY
EMPLOYING  ANY  EMPLOYEE  IN  THE HOSPITALITY INDUSTRY 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 TWICE THE
STATUTORY 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 COMPENSATION
FROM SERVICE CHARGES, MANDATORY GRATUITY ON GOODS OR SERVICES.
  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 employee in the hospitality industry who received compen-
sation consistent with section 196-e of  the  labor  law,  as  added  by
section one of this act, prior to the effective date of this act.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11508-07-4

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