NY State Senate Bill 2015-S5838

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to labor
Jun 05, 2015	referred to labor

co-Sponsors

2015-S5838 (ACTIVE) - Details

See Assembly Version of this Bill:: A8143
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§650 & 656, Lab L

2015-S5838 (ACTIVE) - Summary

Relates to an increase in the minimum wage.

2015-S5838 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5838

TITLE OF BILL:  An act to amend the labor law, in relation to raising
the minimum wage

PURPOSE OR GENERAL IDEA OF BILL:

This bill amends sections 650 and 656 of the Labor Law to require that
in the event the Commissioner of the NYS Department of Labor orders an
increase in the minimum wage for a certain industry, the Commissioner
must also recommend a necessary adjustment to State reimbursement
rates paid to State funded Human Services providers to enable them to
manage resulting recruitment and retention issues.

SUMMARY OF SPECIFIC PROVISIONS:

This bill amends sections 650 and 656 of the Labor Law to require that
in the event the Commissioner of the NYS Department of Labor orders an
increase in the minimum wage for a certain industry, the Commissioner
must also recommend a necessary adjustment to State reimbursement
rates paid to State funded Human Services providers to enable them to
manage resulting recruitment and retention issues.

JUSTIFICATION:

The Commissioner of Labor has been directed by the Governor to

determine if the minimum wage for workers in the fast food industry is
inadequate and should be increased. Depending on the wage board's
findings the Labor Commissioner may order a minimum wage increase for
fast food workers or any other group of employees the wage board has
been directed to evaluate.

The Board's authority to focus a minimum wage increase on a targeted
group of low paid workers, to the exclusion of other similar workers,
will undermine services currently being provided to many needy
individuals. Already nonprofit Human Services providers (those under
the jurisdiction of OPWDD, OMH, OCFS, OASAS and DOH) are experiencing
significant challenges recruiting and retaining critical staff due to
an improving economy and tightening job market.

Fast food employers and human services providers compete for the same
pool of labor. A targeted minimum wage boost for fast food workers, or
any other industry with relatively low paid employees, will give the
those industries an insurmountable competitive advantage in attracting
employees. Thus, this bill recognizes the need to raise the minimum
wage for all low paid employees equitably. Should the wage board
provide a substantial minimum wage increase only for a selected group
of employees many direct support human services professionals will be
incentivized to move to those higher paid industries. This is a
rational choice for human services workers who have extraordinarily
difficult jobs, work under extreme pressure and have families to feed.
However, in the process these workers will leave the needy individuals
they cared for behind.

Consequently, vacancies among critical care staff will soar;
increasingly new hires, unfamiliar with individual needs, will take
the place of seasoned workers; more positions will go unfilled


altogether; awake/overnight shifts will be shorthanded; and, the
ability to ensure health and safety will deteriorate. To mitigate
these impacts, state funded human services providers must be provided
with State reimbursement sufficient to comparably increase the wages
to their front line staff to compete with an increased minimum wage in
other competing labor sectors.

In addition to funding for a minimum wage boost, the State will also
need to provide funding for "wage compression." Wage compression means
that an employee who has demonstrated sufficient commitment and
dedication to have achieved, for example, five years tenure may
suddenly find him or herself working alongside a new hire making the
same salary. For many direct support workers the impact can devastate
their morale, a valuable commodity critical to the quality of care.

This bill requires the State to evaluate the impact of a targeted
minimum wage hike and to provide necessary funding increases to
minimize the damage that could result from that impact.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

2015-S5838 (ACTIVE) - Bill Text download pdf

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

                                  5838

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              June 5, 2015
                               ___________

Introduced by Sens. ORTT, MARTINS -- 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 raising the minimum wage

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

  Section 1. Section 650 of the labor law, as amended by chapter 439  of
the laws of 1962, is amended to read as follows:
  S 650. Statement of public policy.  There are persons employed in some
occupations  in  the  state of New York at wages insufficient to provide
adequate maintenance for themselves and their families. Such  employment
impairs  the  health,  efficiency,  and  well-being  of  the  persons so
employed, constitutes unfair competition  against  other  employers  and
their  employees,  threatens  the  stability  of  industry,  reduces the
purchasing power of employees, and requires,  in  many  instances,  that
wages  be  supplemented  by  the  payment of public moneys for relief or
other public and private assistance.  Employment  of  persons  at  these
insufficient  rates  of  pay  threatens the health and well-being of the
people of this state and injures the overall economy.   Accordingly,  it
is  the declared policy of the state of New York that such conditions be
eliminated as rapidly as practicable  without  substantially  curtailing
opportunities  for employment or earning power. To this end minimum wage
standards shall be established  and  maintained.    IT  IS  FURTHER  THE
DECLARED  POLICY OF THIS STATE THAT ANY REVISION OF THE MINIMUM WAGE FOR
CERTAIN INDUSTRIES AND OCCUPATIONS SHALL  RESULT  IN  AN  ADJUSTMENT  TO
REIMBURSEMENT TO STATE-FUNDED HUMAN SERVICES PROVIDERS OR ENTITIES UNDER
CONTRACT WITH THIS STATE, OR OTHERWISE PROVIDING SERVICES OR GOODS UNDER
AN  AGREEMENT WITH THIS STATE, TO REFLECT THE IMPACT OF THE MINIMUM WAGE
INCREASE ON THE RECRUITMENT AND  RETENTION  OF  DIRECT  SERVICE  PROFES-
SIONALS  AND  DIRECT  CARE  EMPLOYEES  AND TO ADDRESS ANY COMPRESSION IN
WAGES AND SALARIES THAT MAY ALSO RESULT FROM THE MINIMUM WAGE REVISION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11537-01-5

S. 5838                             2

  S 2. Section 656 of the labor law, as added by chapter 619 of the laws
of 1960, is amended to read as follows:
  S  656.  Action by commissioner upon wage board report.  When the wage
board submits its report and recommendations to  the  commissioner,  the
commissioner shall forthwith file them with the secretary of the depart-
ment.  Within five days of their receipt, the commissioner shall publish
a notice of such filing in at least ten  newspapers  of  general  circu-
lation  in  the  state. Any objections to the report and recommendations
shall be filed with the commissioner  within  fifteen  days  after  such
publication.  The  commissioner  may,  if he deems it appropriate, order
oral argument, which shall be scheduled before the commissioner, or such
representative as he may designate, on five days' notice to the  persons
who  have filed objections to the report and recommendations. Whether or
not oral argument is scheduled, the commissioner shall by  order  accept
or  reject the board's report and recommendations within forty-five days
after filing with the secretary of the department. The commissioner  may
by  such  order modify the regulations recommended by the board.  IN THE
EVENT THAT THE COMMISSIONER ORDERS AN INCREASE IN THE MINIMUM  WAGE  FOR
CERTAIN INDUSTRIES AND OCCUPATIONS THAT MAY AFFECT THE CONTINUED ABILITY
OF STATE-FUNDED HUMAN SERVICES PROVIDERS UNDER CONTRACT WITH THIS STATE,
OR  OTHERWISE  PROVIDING  SERVICES OR GOODS UNDER AN AGREEMENT WITH THIS
STATE, TO RECRUIT AND RETAIN DIRECT  SERVICE  PROFESSIONALS  AND  DIRECT
CARE EMPLOYEES, HE SHALL ALSO RECOMMEND ANY NECESSARY ADJUSTMENTS TO THE
REIMBURSEMENT  TO  SUCH  PROVIDERS  TO REFLECT THE IMPACT OF THE MINIMUM
WAGE INCREASE ON THOSE PROFESSIONALS AND EMPLOYEES AND  TO  ADDRESS  ANY
COMPRESSION  IN WAGES AND SALARIES THAT MAY ALSO RESULT FROM THE MINIMUM
WAGE REVISION. Such order of the  commissioner  shall  become  effective
thirty days after publication, in the manner prescribed in this section,
of  a notice of such order. The commissioner may, within such forty-five
days, confer with the wage board, which may make  such  changes  in  its
report  or  recommendations  as  it may deem fit.  The commissioner also
may, within such forty-five days, remand the matter  to  the  board  for
such further proceeding as he may direct.
  S 3. This act shall take effect immediately.

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Senate Bill S5838

Sponsored By

Archive: Last Bill Status - In Senate Committee Labor Committee

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co-Sponsors

2015-S5838 (ACTIVE) - Details

2015-S5838 (ACTIVE) - Summary

2015-S5838 (ACTIVE) - Sponsor Memo

2015-S5838 (ACTIVE) - Bill Text download pdf

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Sponsored By

Robert G. Ortt

Archive: Last Bill Status - In Senate Committee Labor Committee

Actions

co-Sponsors

Jack M. Martins

Michael H. Ranzenhofer

2015-S5838 (ACTIVE) - Details

2015-S5838 (ACTIVE) - Summary

2015-S5838 (ACTIVE) - Sponsor Memo

2015-S5838 (ACTIVE) - Bill Text download pdf

Comments