senate Bill S6518A

Relates to the increase in the minimum wage and provides that on each December 31st the rate shall be indexed to inflation; repealer

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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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  • 31 / Jan / 2014
    • REFERRED TO LABOR
  • 11 / Jun / 2014
    • AMEND (T) AND RECOMMIT TO LABOR
  • 11 / Jun / 2014
    • PRINT NUMBER 6518A

Summary

Relates to the increase in the minimum wage and provides that on December 31st, 2016 and each December 31st thereafter, the rate shall be indexed to inflation.

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Bill Details

See Assembly Version of this Bill:
A8343A
Versions:
S6518
S6518A
Legislative Cycle:
2013-2014
Current Committee:
Senate Labor
Law Section:
Labor Law
Laws Affected:
Amd §§651, 652, 653, 654 & 662, rpld §652 sub 6, Lab L; amd §11, Munic Home R L
Versions Introduced in 2013-2014 Legislative Cycle:
A8343A

Sponsor Memo

BILL NUMBER:S6518A

TITLE OF BILL: An act to amend the labor law and the municipal home
rule law, in relation to the minimum wage and repealing subdivision 6
of section 652 of such law relating thereto

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to accelerate the increase of the
statutory minimum wage and to increase the cash wage for food service
workers, to index these wages to inflation, and to authorize
localities to Increase their local minimum wage up to thirty percent
more than the state's minimum wage.

SUMMARY OF SPECIFIC PROVISIONS:

Sections 1 and 2 of the bill would amend § 651 of the Labor Law to
require that state and municipal governments and political
subdivisions thereof pay their employees the statutory minimum wage.

Section 3 of the bill would amend § 652 of the Labor Law to raise the
statutory minimum wage from $8.00 to $9.00 per hour on December 31,
2014, to $10.10 per hour on December 31, 2015, and index the rate to
inflation on December 31, 2016, and each year thereafter. Section 3
would also increase the cash wage for food service workers from $5 to
$5.50 immediately, to $6.20 on December 31, 2014, to $6.95 on December
31, 2015, and index the rate to inflation on December 31, 2016, and
each year thereafter.

Section 4 of the bill would repeal subdivision 6 of § 652 of the Labor
Law, which was enacted in the SFY 2013-14 budget, that provided that
the cash wage for food service workers would be modified through a
wage order.

Section 5 of the bill would amend § 653 of the Labor Law to clarify
that service employees paid in accordance with the hospitality wage
order are included in the wage board process that takes place upon a
change to the statutory minimum wage.

Section 6 of the bill would amend § 11 of the Municipal Home Rule Law
to allow counties and cities to adopt certain local wage laws that
supersede labor laws.

Section 7 of the bill would amend § 654 of the Labor Law to authorize
counties and cities to raise their local minimum wage up to thirty
percent higher than the state's minimum wage.

Section 8 of the bill would amend § 662 of the Labor Law to provide
that employers would be liable for penalties associated with failure
to pay the local minimum wage.

Section 9 of the bill provides for an immediate effective date.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:

Present law provides that the minimum wage shall be increased to $8.75
on December 31, 2014 and $9.00 on December 31, 2015. This bill


accelerates the increase to require a minimum wage of $9.00 on
December 31, 2014, provides for another minimum wage increase to
$10.10 on December 31, 2015, and indexes the wage to inflation.
Current law does not provide for statutory increases to the cash wage
paid to food service workers and service employees under the
hospitality wage order. Current law does not authorize localities to
establish higher minimum wages.

JUSTIFICATION:

When Congress enacted the 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. 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. If the 1968 minimum wage of $1.50 had been
indexed to inflation, it would have the purchasing power of over
$10.00 today. While the recent increase to the minimum wage to $8.00
is a start, more can be done to help families meet the rising costs of
food and shelter, health care, transportation, child care and other
necessities.

This bill ensures that the state's minimum wage will keep pace with
inflation and also recognizes that the state is diverse, with the cost
of living varying by region. Permitting localities to increase the
minimum wage will enable localities to establish adequate wages for
working families.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None known.

EFFECTIVE DATE:

Immediately.

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

                                 6518--A

                            I N  S E N A T E

                            January 31, 2014
                               ___________

Introduced  by Sens. ESPAILLAT, STEWART-COUSINS, AVELLA, BRESLIN, DILAN,
  GIANARIS, HOYLMAN, KENNEDY,  KRUEGER,  MONTGOMERY,  PERALTA,  PERKINS,
  RIVERA,  SERRANO, SQUADRON, TKACZYK -- read twice and ordered printed,
  and when printed to be committed to the Committee on Labor --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the labor law  and  the  municipal  home  rule  law,  in
  relation  to  the  minimum wage and repealing subdivision 6 of section
  652 of such law 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, subdivi-
sion 1 as amended by section 1 of part P of chapter 57 of  the  laws  of
2013  and  subdivisions 4 and 5 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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13423-06-4

S. 6518--A                          2

  $7.15 on and after January 1, 2007,
  $8.00 on and after December 31, 2013,
  [$8.75 on and after December 31, 2014,]
  $9.00 on and after December 31, [2015] 2014,
  $10.10  ON  AND  AFTER DECEMBER 31, 2015 AND ON AND AFTER DECEMBER 31,
2016 AND ON EACH FOLLOWING DECEMBER THIRTY-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 DECEMBER THIRTY-FIRST
USING THE CONSUMER PRICE INDEX-ALL URBAN CONSUMERS, CPI-U, OR A  SUCCES-
SOR  INDEX  AS  CALCULATED  BY THE UNITED STATES DEPARTMENT 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 estab-
lished 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; AT LEAST FIVE DOLLARS AND FIFTY CENTS ON OR
AFTER THE EFFECTIVE DATE OF THE CHAPTER OF  THE  LAWS  OF  TWO  THOUSAND
FOURTEEN  THAT  AMENDED  THIS  SUBDIVISION; AND AT LEAST SIX DOLLARS AND
TWENTY CENTS ON OR AFTER DECEMBER THIRTY-FIRST, TWO  THOUSAND  FOURTEEN;
AND  AT  LEAST  SIX  DOLLARS  AND NINETY-FIVE CENTS ON OR AFTER DECEMBER
THIRTY-FIRST,  TWO  THOUSAND  FIFTEEN   AND   ON   OR   AFTER   DECEMBER
THIRTY-FIRST,  TWO THOUSAND SIXTEEN AND ON EACH FOLLOWING DECEMBER THIR-
TY-FIRST, THE COMMISSIONER SHALL CALCULATE  AND  ESTABLISH  AN  ADJUSTED
CASH WAGE RATE BY INCREASING THE THEN CURRENT CASH WAGE RATE BY THE RATE
OF  INFLATION FOR THE MOST RECENT TWELVE MONTH PERIOD AVAILABLE PRIOR TO
EACH DECEMBER 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, 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 FIFTY CENTS ON OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF
THE LAWS OF TWO THOUSAND FOURTEEN THAT  AMENDED  THIS  SUBDIVISION;  SIX
DOLLARS AND TWENTY CENTS ON OR AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND

S. 6518--A                          3

FOURTEEN;  SIX  DOLLARS AND NINETY-FIVE CENTS ON OR AFTER DECEMBER THIR-
TY-FIRST, TWO THOUSAND FIFTEEN AND ON OR  AFTER  DECEMBER  THIRTY-FIRST,
TWO  THOUSAND  SIXTEEN  AND ON EACH FOLLOWING DECEMBER THIRTY-FIRST, THE
COMMISSIONER SHALL CALCULATE AND ESTABLISH AN ADJUSTED CASH WAGE RATE BY
INCREASING  THE THEN CURRENT CASH WAGE RATE BY THE RATE OF INFLATION FOR
THE MOST RECENT TWELVE MONTH PERIOD AVAILABLE  PRIOR  TO  EACH  DECEMBER
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. Subdivision 6 of section 652 of the labor law is REPEALED.
  S  5. Subdivision 2 of section 653 of the labor law, as added by chap-
ter 14 of the laws of 2000, is amended to read as follows:
  (2) The commissioner shall, within six months after enactment  of  any
change  in  the  statutory  minimum wage set forth in subdivision one of
section six hundred fifty-two of this article, appoint a wage  board  to
inquire  and  report  and recommend any changes to wage orders governing
wages payable to food service workers  AND  SERVICE  EMPLOYEES  PAID  IN
ACCORDANCE  WITH  PART 146 OF TITLE 12 OF THE NEW YORK STATE COMPILATION
OF CODES, RULES AND REGULATIONS.  Such wage board shall  be  established
consistent with the provisions of subdivision one of section six hundred
fifty-five  of this article, except the representatives of the employees
shall be selected upon the nomination of the state  American  Federation
of  Labor/Congress  of  Industrial Organizations; and provided, further,
that the representatives of the employers shall  be  selected  upon  the
nomination  of  the  New  York  State  Business  Council. Any wage order
authorizing a lesser wage than the previously and  statutorily  mandated
minimum  wage  for such employees shall be reviewed by the wage board to
ascertain at what  level  such  wage  order  is  sufficient  to  provide
adequate maintenance and to protect the health and livelihood of employ-
ees  subject  to  such  a  wage  order after a statutory increase in the
mandated minimum wage.
  S 6. 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 7. 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

S. 6518--A                          4

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 AND CITIES  ARE  AUTHORIZED  TO  ADOPT  MINIMUM  STANDARDS
RELATING  TO  WAGES, 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 8. 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 OR  CITY,  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  within  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 imprison-
ment, for each such offense. Each payment to any employee in any week of
less than the wage applicable under  this  article  shall  constitute  a
separate offense.
  S 9. This act shall take effect immediately.

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