Senate Bill S645

2019-2020 Legislative Session

Relates to the effect of the minimum wage increase on New York state businesses and workforce

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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 08, 2020	referred to labor
Jan 09, 2019	referred to labor

2019-S645 (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§652 & 21, Lab L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S7727
2017-2018: S662

2019-S645 (ACTIVE) - Summary

Relates to the effect of the minimum wage increase on New York state businesses and workforce.

2019-S645 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S645

SPONSOR: BOYLE
 
TITLE OF BILL:  An act to amend the labor law, in relation to the
effects of the minimum wage increase on New York state businesses and
workforce

 
PURPOSE:

To call upon the Commissioner of the Department of Labor to compile and
report annually to the Legislature, the number of businesses that have
closed, moved out of New York State, reduced their number of employees,
and/or halted planned expansions due to an increase in minimum wage.
These statistics should further show the number of jobs which were
affected for appropriate compilation on a statewide basis.

 
SUMMARY OF PROVISIONS:

Section 1. This bill amends subdivision 6 of section 652 of the labor
law to mandate the Division of Budget to consider the information
compiled on the number of businesses that have closed, moved out of New

York State, reduced their number of employees, and/or halted planned
expansions due to an increase in minimum wage when it conducts analysis
of the state of the economy.

Section 2. This bill amends section 21 of the labor law to require the
Commissioner of the Department of Labor to compile and report to the
Legislature the number of businesses that have closed, moved out of New
York State, reduced their number of employees, and/or halted planned
expansions due to an increase in minimum wage. This bill also requires
the Commissioner of the Department of Labor to establish a mechanism for
businesses to report if they have closed, moved out of New York State,
reduced their number of employees, and/or halted planned expansions due
to an increase in minimum wage.

Section 3. Effective Date.

 
EXISTING LAW:

 
JUSTIFICATION:

In the fiscal year 2016-2017 budget vote, a phased in minimum wage
increase was included in the final version of the State budget.  Start-
ing in 2019 the Division of Budget will conduct an annual study to
review the impact of minimum wage increases and review the regional
economic climate throughout the State based on well-established economic
indexes and accepted economic factors. The Division of Budget will have
authority to temporarily suspend any scheduled wage increase based on
such study. Although this provision will provide some safety to busi-
nesses struggling to stay within New York, it fails to take into account
the direct effect of the minimum wage increase on businesses.

This bill directs the Commissioner of the Department of Labor to compile
and report to the Legislature the number of businesses that have closed,
moved out of New York State, reduced their number of employees, and/or
halted planned expansions due to an increase in minimum wage. This bill
requires the Commissioner of the Department of Labor to establish a
mechanism for businesses to report if they have closed, moved out of New
York State, reduced their number of employees, and/or halted planned
expansions due to an increase in minimum wage. It also directs the Divi-
sion of Budget to take these reports into consideration when conducting
their economic analysis and deciding whether to suspend any scheduled
wage increase.

 
LEGISLATIVE HISTORY:

05/12/16 REFERRED TO LABOR
01/04/17 REFERRED TO LABOR
01/03/18 REFERRED TO LABOR

 
FISCAL IMPLICATIONS:

To be determined.

2019-S645 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    645
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen.  BOYLE  -- 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 the effects of the minimum
   wage increase on New York state businesses and workforce

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 6 of section 652 of the labor law, as added by
 section 3 of part K of chapter 54 of the laws of  2016,  is  amended  to
 read as follows:
   6.  Notwithstanding  subdivision one of this section, and sections six
 hundred fifty-three and six hundred fifty-five of this  article,  on  or
 after January first, two thousand nineteen, and each January first ther-
 eafter  until  such  time  as the minimum wage is fifteen dollars in all
 areas of the state, the division of budget shall conduct an analysis  of
 the  state  of the economy in each region, and the effect of the minimum
 wage increases listed in this section, to determine whether there should
 be a temporary suspension  or  delay  in  any  scheduled  increases.  In
 conducting  its  analysis,  the  division  of  budget  shall consult the
 department, the department's division of research  and  statistics,  the
 United  States department of labor, the federal reserve bank of New York
 and other economic experts.  ADDITIONALLY, THE DIVISION OF BUDGET  SHALL
 TAKE  INTO  CONSIDERATION  THE INFORMATION COMPILED PURSUANT TO SUBDIVI-
 SIONS SIXTEEN AND SEVENTEEN OF SECTION TWENTY-ONE OF THIS  CHAPTER.  The
 division  of budget will reference well-established economic indexes and
 accepted economic factors, including those  set  forth  in  section  six
 hundred fifty-four of this article, to justify and explain its decision.
 After  reviewing  such indexes and factors, the division shall determine
 whether scheduled increases in the minimum wage shall continue up to and
 including fifteen dollars. The division of budget will  issue  a  report
 and  recommendation  to  the commissioner, who shall take action on that
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD04376-01-9

 S. 645                              2
 
 report and recommendation pursuant to section six hundred  fifty-six  of
 this article.
   § 2. Section 21 of the labor law is amended by adding three new subdi-
 visions 16, 17 and 18 to read as follows:
   16. SHALL COMPILE AND REPORT, ON AN ANNUAL BASIS, TO THE GOVERNOR, THE
 TEMPORARY  PRESIDENT  OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY, THE
 NUMBER OF CORPORATIONS AND BUSINESS ENTITIES THAT HAVE  FILED  WITH  THE
 SECRETARY  OF  STATE  THAT  HAVE  DISSOLVED OR CEASED TO EMPLOY NEW YORK
 WORKERS IN ENTITIES LOCATED WITHIN NEW YORK STATE DUE TO THE INCREASE IN
 MINIMUM WAGE.
   17. SHALL ASK CORPORATIONS AND BUSINESS ENTITIES THAT HAVE FILED  WITH
 THE  SECRETARY OF STATE, TO REPORT THE NUMBER OF EMPLOYEES AT THE BEGIN-
 NING OF EACH YEAR AND THE END OF EACH YEAR,  SPECIFICALLY  NOTATING  THE
 NUMBER  OF  EMPLOYEES  NO LONGER EMPLOYED DUE TO THE INCREASE IN MINIMUM
 WAGE.   ADDITIONALLY, SUCH  CORPORATIONS  AND  BUSINESS  ENTITIES  SHALL
 REPORT  ANY FAILURES TO EXPAND DUE TO SUCH INCREASE.  SUCH DATA SHALL BE
 COMPILED AND REPORTED, ON AN ANNUAL BASIS, TO THE GOVERNOR,  THE  TEMPO-
 RARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.
   18.  SHALL  ESTABLISH  A MECHANISM FOR WHICH CORPORATIONS AND BUSINESS
 ENTITIES SHALL PROVIDE THE INFORMATION DESCRIBED IN SUBDIVISIONS SIXTEEN
 AND SEVENTEEN OF THIS SECTION.
   § 3. This act shall take effect immediately.

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Senate Bill S645

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Archive: Last Bill Status - In Senate Committee Labor Committee

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2019-S645 (ACTIVE) - Details

2019-S645 (ACTIVE) - Summary

2019-S645 (ACTIVE) - Sponsor Memo

2019-S645 (ACTIVE) - Bill Text download pdf

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Sponsored By

Phil Boyle

Archive: Last Bill Status - In Senate Committee Labor Committee

Actions

2019-S645 (ACTIVE) - Details

2019-S645 (ACTIVE) - Summary

2019-S645 (ACTIVE) - Sponsor Memo

2019-S645 (ACTIVE) - Bill Text download pdf

Comments