Senate Bill S450

                                
 
BILL NUMBER: S450

SPONSOR: HELMING
 
TITLE OF BILL:  An act to amend the labor law, in relation to estab-
lishing a training wage

 
PURPOSE:

This bill allows a training wage for youths and allows them to work in a
temporary capacity to receive annual increases until reaching the age of
18.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 652 of the Labor Law to provide for a training
wage for persons under the age of eighteen who does not have prior job
experience. This wage may be eighty-five percent of the State minimum
wage or one hundred percent of the federal minimum wage, whichever is
less.

The legislation provides that any youth who receives a training wage in
              

their first year of employment, and who works less than 180 days in the
previous calendar year will receive, at a minimum, an annual increase in
wages equal to 25 percent of the difference between the training wage
and the state minimum wage until reaching the age of 18. The legislation
further provides that no youth shall receive a training wage for more
than 180 days.

The legislation also provides that employers will be limited to paying
no more than 20 percent of their workforce, or no more than six youth
training wages, whichever is more at any one employment location. And
lastly, at no time will a youth receiving a training wage be used to
displace an employee making at least the state minimum wage.

Section 2 contains an immediate effective date.

 
JUSTIFICATION:

A training wage will provide employers with the ability to hire addi-
tional teenagers for summer jobs giving them the needed job experience
to acquire better paying jobs with more responsibilities.

The bill also acknowledges the high payroll cost of employment for busi-
nesses who hire teenagers who have no prior job experience.  Teenagers
who have no prior job experience are unable to show a potential employer
that they demonstrate the responsible characteristics needed by business
owners.

The bill also recognizes that some businesses operate in a seasonal
capacity, and often re-hire youths who worked in the previous year to
work during their season of operation. By allowing any youth who
received a training wage, and who worked less than 180 days in the
previous calendar year, to be rehired by the same business at a rate of
25 percent of the difference between the training wage and the state
minimum wage annually, the seasonal business will be able to maintain
operations, while still increasing the wages of the youth worker.

 
LEGISLATIVE HISTORY:

2018: S.7269/A.4339 referred to Labor
2017: A.4339 referred to Labor
2015-16: A.4384-A referred to Labor
2013-14: A.5359 referred to Labor
2011-12: A.6528 referred to Labor
2009-10: A.2863 referred to Labor

 
FISCAL IMPLICATIONS:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.