Senate Bill S4514

                                 
BILL NUMBER: S4514A

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the labor law, in relation to requiring the commissioner
of labor to prepare an annual report on the cost of living, poverty
rates and adequacy of the current minimum wage in the state

 
PURPOSE:

To require the Commissioner of the Department of Labor to prepare an
annual report on the state's cost of living, poverty rates, and the
adequacy of the current minimum wage.

 
SUMMARY OF PROVISIONS:

Section 1. Section 21 of the labor law is amended by adding a new subdi-
vision 16. This addition mandates the Department of Labor shall produce
a report to analyze the change in living costs, changes in poverty and
child poverty for households that include one or more workers, and the
adequacy of the minimum wage. The report shall also compare the current
              

and projected future value of the state's various region-based minimum
wage levels with the minimum wages in other high-cost states. This
report shall be produced annually by the 13th of September and distrib-
uted to the governor, the temporary president of the senate, the speaker
of the assembly, and the chairs of the labor committees.

Section 2. This act shall take effect immediately.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

The 2025 version of this legislation requires the New York State Depart-
ment of Labor to include the True Cost of Economic Security (TCES) meas-
ure as one of the cost-of-living metrics in its annual report.

 
JUSTIFICATION:

In New York State, approximately one million workers, or 16.4 percent of
the workforce, earn the minimum wage. The State must ensure the legisla-
ture has accurate data on the cost of living and the adequacy of the
current minimum wage.

Inflation has consistently outpaced wage growth, reducing the real value
of the minimum wage and weakening worker's purchasing power.  For 2025,
the Consumer Price Index for the New York metropolitan area increased by
4.2 percent, yet wages at the lowest end did not keep pace. This dispar-
ity makes it harder for workers to afford rent, food, transportation,
and healthcare.

The impact is particularly severe in high-cost regions like New York
City. For 2025, rent for a one-bedroom apartment in high-cost regions
like New York City is $2,511, according to the most recent HUD data. A
full-time minimum wage worker earns approximately $33,280 per year
before taxes, making it nearly impossible to afford housing without
spending most of their income on rent. The Economic Policy Institute's
Family Budget Calculator estimates that a single adult in New York State
needs at least $51,500 annually to cover basic expenses.

Minimum wage workers are disproportionately women and people of color,
who also face entrenched barriers to economic mobility. In New York,
women make up 61 percent of all minimum wage earners. Black and Latino
workers represent nearly half of the low-wage workforce, despite
comprising a smaller share of the total labor force. Many of these work-
ers do not receive employer-sponsored health insurance and depend on
public assistance programs such as Medicaid and SNAP, effectively shift-
ing labor costs on to taxpayers.

To improve wage policy decisions, this bill requires the New York State
Department of Labor to submit an annual report by September 13.  The
report will analyze the cost of living, poverty rates, and minimum wage
adequacy using multiple cost-of-living measures, including the National
True Cost of Living Coalition's, True Cost of Economic Security measure
(TCES). This tool provides a precise, regionally adjusted assessment of
what workers actually need to afford basic necessities, including hous-
ing, childcare, healthcare, and transportation.

The report will also include disaggregated data by race, ethnicity,
gender, age, disability status, household size, and education level
across four state regions. Regular reporting will ensure policymakers
make informed decisions that align wages with the true cost of living in
New York.

 
LEGISLATIVE HISTORY:

2023-24: A6938 (Burgos)- Referred to Labor; enacting clause stricken.

 
FISCAL IMPACT:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.