NY State Senate Bill 2023-S1978A

Current 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to labor
Feb 03, 2023	print number 1978a
Feb 03, 2023	amend and recommit to labor
Jan 17, 2023	referred to labor

Bill Amendments

Original

A (Active)

co-Sponsors

View additional co-sponsors

2023-S1978 - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §652, rpld §652 sub 6, ren §665 to be §669, add §665, Lab L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9085
2021-2022: S3062

2023-S1978 - Summary

Increases the minimum wage annually; provides for the enforcement of the minimum wage; repeals certain provisions of law relating thereto.

2023-S1978 - Sponsor Memo

                                 
BILL NUMBER: S1978

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the labor law, in relation to raising the minimum wage
annually by a percentage which is based on inflation and providing for
the enforcement of such minimum wage; and to repeal subdivision 6 of
section 652 of the labor law relating thereto

 
PURPOSE OR GENERAL IDEA OF BILL:

Ensures that the minimum wage keeps up with rising prices.

 
SUMMARY OF PROVISIONS:

Section 1: This act shall be known and cited as the Raise the Wage Act

Section 2: Legislative findings

Section 3: Amends the labor law Section 652 to include rates of minimum
wage 2023. 2024 2025, 2026 and index to inflation after said date. After

2026, the Commissioner of Labor will publish a new, increased minimum
wage on or before October first of each year. The new wage will be the
current minimum wage increased by June. The June rate of inflation as
measured by the consumer price index for all urban consumers (CPI-U).
When inflation is positive, the new minimum wage takes effect on Decem-
ber 31st.

Section 4: Subdivision 6 of section 652 of the labor law is REPEALED.

Section 5. Established local wage enforcement authority for a city of
one million or more. Section 6: Effective date.

 
JUSTIFICATION:

In New York State, roughly one million workers--16.4% of New York
State's workforce-earn the minimum wage. Beginning in 2012, the nation-
wide Fight for Fifteen movement publicized the inadequacy of the minimum
wage and in part led state lawmakers to gradually increase the minimum
wage in New York. New York City reached a $15 minimum wage in 2019, and
the rest of downstate to attain $15 minimum wage in 2021. The upstate
minimum wage is currently $14.20. Current law would increase upstate's
minimum wage each year according to inflation and other indicators as
determined by the Commissioner until it reaches $15.

Historically yearly gains in inflation have decreased the value of the
minimum wage, chipping away at workers purchasing power and leading to
hardship or many. Increases in minimum wage historically have not
occurred each year in New York State. Each year that inflation increases
and wages at the bottom do not workers in the lowest-paying positions
struggle to pay bills, feed their families, and access transportation
Across the state, minimum wage workers are disproportionately women and
people of color. groups that also face significant barriers to advance-
ment.

By joining eighteen other states that have tied the minimum wage to
inflation minimum wage workers in New York State will maintain their
purchasing power without yearly legislative action
 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S1978 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1978
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2023
                                ___________
 
 Introduced  by  Sens.  RAMOS,  BAILEY,  BRISPORT, BROUK, CLEARE, COONEY,
   GOUNARDES, HOYLMAN-SIGAL, JACKSON, KAVANAGH, KRUEGER,  MYRIE,  PARKER,
   RIVERA, SALAZAR -- 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
   annually by a percentage which is based on inflation and providing for
   the enforcement of such minimum wage; and to repeal subdivision  6  of
   section 652 of the labor law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the "raise  the
 wage act".
   §  2.  Legislative  findings. As New Yorkers struggle with the rapidly
 rising cost of living, their paychecks are not  keeping  up.  The  state
 minimum  wage  has  been flat at $15 in New York city since 2019. In the
 New York city suburbs it is also stalled at $15 and  under  current  law
 will not increase further. And in the rest of the state, years after the
 legislature  last  acted to raise the minimum wage it is still gradually
 inching up to $15, but will not increase further until  the  legislature
 acts.
   At  the  same  time, record inflation is causing the real value of the
 minimum wage to plummet across the state as consumers struggle with  the
 rapidly  rising  cost  of  necessities.  In New York city, its value has
 already fallen more than 15%, and is projected to fall a further 15%  by
 2027, or even more if consumer price inflation does not moderate in 2023
 and  2024 as expected. This steep decline in the minimum wage is revers-
 ing the historic reductions in poverty and earnings inequality that  the
 state  achieved  with  the  $15  minimum  wage.  And even once inflation
 returns to more typical levels, workers will continue to lose real wages
 as long as our minimum wage remains stagnant.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04134-01-3
 S. 1978                             2

 
   While in 2016 New York led the nation as the first state  to  adopt  a
 $15  minimum  wage, today it has fallen behind the many other cities and
 states that are raising their minimum wages well beyond $15. About fifty
 cities and counties and two states will have minimum wages above $15  an
 hour  as of January 2023, and a growing group will have minimum wages of
 more than $17 or $18 an hour. The fact that Yakima, Washington,  Fresno,
 California, and Denver, Colorado will all have higher minimum wages than
 New York shows how far pay has fallen in the state.
   To fix this, first, the value of New York city's minimum wage needs to
 be  restored  by  "catching it up" to where it would have been if it had
 been adjusted steadily each year since 2019 to  keep  pace  with  rising
 prices  and workforce productivity. That translates to raising the mini-
 mum wage to $21.25 an hour by 2027.
   Second, because the state minimum wage in  New  York  city's  suburbs,
 including  Nassau, Suffolk, and Westchester counties, is also stalled at
 $15 and those regions have housing and living costs that are  almost  as
 high  as  New  York  city, the minimum wage there should increase at the
 same rate.
   Third, the minimum wage in the remainder  of  the  state  should  also
 eventually catch up with the state-wide rate, but at a slower pace since
 wages and costs are lower there.
   Finally, once the minimum wage across the state catches up, it must be
 automatically  adjusted  or  "indexed" each year so that it doesn't fall
 behind again. That is the approach that 18 states and  Washington,  D.C.
 are  already using to keep their minimum wages up to date. For adjusting
 the minimum wage each year, the legislature should adopt the same formu-
 la that the department of labor and the  division  of  the  budget  used
 successfully  to  increase  New  York's upstate minimum wage in 2022 and
 2023. They have been adjusting the minimum wage so that it keeps up both
 with rising prices and also with any increases in  worker  productivity.
 This  best  practice  ensures that underpaid workers' paychecks maintain
 their purchasing power and, that when there are gains in worker  produc-
 tivity,  that  workers  too  share  in those benefits. This approach has
 resulted in steady, moderate increases in the upstate wage of  70  cents
 in  2022,  and  $1.00  in 2023. It should be made permanent and expanded
 state-wide.
   Many of our lowest paid jobs  across  the  state  are  publicly-funded
 human  services jobs, in fields such as home care, childcare, and mental
 health care, where workers provide essential services on  which  we  all
 rely.  But  the  eroded minimum wage is holding down pay for these vital
 caregivers and making it impossible to fill these demanding jobs at  the
 same  time  that  demand  for services has exploded as the state's popu-
 lation ages and the pandemic has stressed families and  communities.  To
 address  this  critical  worker  shortage, we need to not just raise the
 minimum wage significantly, but also to provide the state funding neces-
 sary to finance those raises in the state and  city-contracted  programs
 that employ these essential workers.
   New  York's  experience  phasing  in  the $15 minimum wage showed that
 significant wage increases have been manageable for employers  and  that
 higher  paychecks  have  put money back into local communities, boosting
 consumer spending at neighborhood businesses.  Studies  by  the  federal
 reserve  bank  of New York of the impact in upstate counties, and by the
 New York city-based new school both found that New York's  last  minimum
 wage increase raised pay significantly without hurting employment - even
 in  counties  along  the  New York-Pennsylvania border where the minimum
 wage in our neighboring state is just $7.25.
 S. 1978                             3
 
   With the value of New York's minimum wage plummeting and rising prices
 squeezing New York's working families,  we  cannot  afford  to  wait  to
 restore a strong minimum wage for all New Yorkers.
   §  3.  Subdivision  1  of  section 652 of the labor law, as amended by
 section 1 of part K of chapter 54 of the laws of  2016,  is  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,
   $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, and until December 31, 2016, or,
 if greater, such other wage as may be established by federal law  pursu-
 ant to 29 U.S.C. section 206 or its successors or such other wage as may
 be established in accordance with the provisions of this article.
   (a) New York City. [(i) Large employers.] Every employer [of eleven or
 more  employees] shall pay to each of its employees for each hour worked
 in the city of New York a wage of not less than:
   $11.00 per hour on and after December 31, 2016,
   $13.00 per hour on and after December 31, 2017,
   $15.00 per hour on and after December 31, 2018,
   $17.25 ON AND AFTER JANUARY 1, 2025,
   $19.25 ON AND AFTER JANUARY 1, 2026,
   $21.25 ON AND AFTER JANUARY 1, 2027, 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 established in accordance
 with the provisions of this article.
   [(ii) Small employers. Every employer of ten or less  employees  shall
 pay  to  each  of  its employees for each hour worked in the city of New
 York a wage of not less than:
   $10.50 per hour on and after December 31, 2016,
   $12.00 per hour on and after December 31, 2017,
   $13.50 per hour on and after December 31, 2018,
   $15.00 per hour on and after December 31, 2019,
   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 established in accordance with the provisions  of  this  arti-
 cle.]
   (b)  Remainder  of  downstate. Every employer shall pay to each of its
 employees for each hour worked in the counties of  Nassau,  Suffolk  and
 Westchester a wage not less than:
   $10.00 per hour on and after December 31, 2016,
   $11.00 per hour on and after December 31, 2017,
   $12.00 per hour on and after December 31, 2018,
   $13.00 per hour on and after December 31, 2019,
   $14.00 per hour on and after December 31, 2020,
   $15.00 per hour on and after December 31, 2021,
   $17.25 ON AND AFTER JANUARY 1, 2025,
   $19.25 ON AND AFTER JANUARY 1, 2026,
   $21.25 ON AND AFTER JANUARY 1, 2027,
 S. 1978                             4
 
   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 established in accordance with the provisions of this article.
   (c)  Remainder  of  state.  Every  employer  shall  pay to each of its
 employees for each hour worked outside of the city of New York  and  the
 counties of Nassau, Suffolk, and Westchester, a wage of not less than:
   $9.70 on and after December 31, 2016,
   $10.40 on and after December 31, 2017,
   $11.10 on and after December 31, 2018,
   $11.80 on and after December 31, 2019,
   $12.50 on and after December 31, 2020,
   [and  on each following December thirty-first, a wage published by the
 commissioner on or before October first, based on the then current mini-
 mum wage increased by a percentage determined by  the  director  of  the
 budget in consultation with the commissioner, with the result rounded to
 the nearest five cents, totaling no more than fifteen dollars, where the
 percentage increase shall be based on indices including, but not limited
 to,  (i)  the  rate of inflation for the most recent twelve month period
 ending June of that year based on the consumer price index for all urban
 consumers on a national and seasonally unadjusted basis  (CPI-U),  or  a
 successor  index as calculated by the United States department of labor,
 (ii) the rate of state personal income growth  for  the  prior  calendar
 year, or a successor index, published by the bureau of economic analysis
 of the United States department of commerce, or (iii) wage growth;]
   $13.20 ON AND AFTER DECEMBER 31, 2021,
   $14.20 ON AND AFTER JANUARY 1, 2024,
   $16.00 ON AND AFTER JANUARY 1, 2025,
   $18.00 ON AND AFTER JANUARY 1, 2026,
   $20.00 ON AND AFTER JANUARY 1, 2027,
   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 established in accordance with the provisions of this article.
   (d) ANNUAL INCREASES. ON JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT, AND
 ON  EACH FOLLOWING JANUARY FIRST, THE WAGES SET FORTH IN PARAGRAPHS (A),
 (B) AND (C) OF THIS SUBDIVISION  AND  ANY  OTHER  WAGES  ESTABLISHED  IN
 ACCORDANCE  WITH  THE  PROVISIONS  OF  THIS CHAPTER AND SET FORTH IN ANY
 MINIMUM WAGE ORDER, SHALL BE THE WAGES  PUBLISHED  BY  THE  COMMISSIONER
 PURSUANT TO THIS PARAGRAPH. THE COMMISSIONER SHALL PUBLISH SUCH WAGES ON
 OR  BEFORE OCTOBER FIRST, TWO THOUSAND TWENTY-SEVEN, AND ON EACH FOLLOW-
 ING OCTOBER FIRST. THE COMMISSIONER SHALL BASE EACH SUCH PUBLISHED  WAGE
 ON  EACH  THEN  CURRENT  WAGE  INCREASED  BY THE SUM OF: (I) THE RATE OF
 INFLATION, IF GREATER THAN ZERO, AS MEASURED BY THE CHANGE IN THE  AVER-
 AGE  FOR  THE  TWELVE MONTHS THROUGH JUNE OF THE CURRENT YEAR DIVIDED BY
 THE AVERAGE FOR THE TWELVE MONTHS THROUGH JUNE OF THE PRECEDING YEAR  IN
 THE CONSUMER PRICE INDEX FOR ALL URBAN WAGE EARNERS AND CLERICAL WORKERS
 ON  A  NATIONAL  AND SEASONALLY UNADJUSTED BASIS (CPI-W), OR A SUCCESSOR
 INDEX, AS CALCULATED BY THE UNITED STATES DEPARTMENT OF LABOR; AND  (II)
 LABOR  PRODUCTIVITY  GROWTH,  IF  GREATER  THAN ZERO, AS MEASURED BY THE
 CHANGE IN THE AVERAGE QUARTERLY INDEX FOR THE FOUR QUARTERS THROUGH  THE
 SECOND  QUARTER  OF  THE  CURRENT  YEAR DIVIDED BY THE AVERAGE QUARTERLY
 INDEX FOR THE FOUR QUARTERS THROUGH THE SECOND QUARTER OF THE  PRECEDING
 YEAR  IN  NATIONAL  LABOR PRODUCTIVITY (OUTPUT PER HOUR) OF ALL EMPLOYED
 PERSONS IN THE NONFARM BUSINESS SECTOR, OR A SUCCESSOR INDEX, AS  CALCU-
 LATED  BY THE UNITED STATES DEPARTMENT OF LABOR, WITH THE SUM ROUNDED TO
 THE NEAREST MULTIPLE OF FIVE CENTS. THE COMMISSIONER SHALL PUBLISH  SUCH
 WAGES  ON  OR BEFORE OCTOBER FIRST, TWO THOUSAND TWENTY-SEVEN, AND ON OR
 S. 1978                             5
 
 BEFORE EACH FOLLOWING OCTOBER FIRST.  PROVIDED, HOWEVER, THAT  THE  WAGE
 SET  FORTH  FOR  PARAGRAPH (C) OF THIS SUBDIVISION THAT THE COMMISSIONER
 PUBLISHES ON OR BEFORE OCTOBER FIRST, TWO THOUSAND TWENTY-SEVEN TO  TAKE
 EFFECT  ON JANUARY FIRST, TWO THOUSAND TWENTY-EIGHT SHALL BE A WAGE THAT
 IS EQUAL TO THE WAGE THAT THE COMMISSIONER PUBLISHES TO TAKE  EFFECT  ON
 JANUARY  FIRST,  TWO THOUSAND TWENTY-EIGHT FOR PARAGRAPHS (A) AND (B) OF
 THIS SUBDIVISION. THEREAFTER, BEGINNING WITH THE WAGE THAT  THE  COMMIS-
 SIONER  PUBLISHES  FOR  PARAGRAPH  (C)  OF THIS SUBDIVISION ON OR BEFORE
 OCTOBER FIRST, TWO THOUSAND  TWENTY-EIGHT  TO  TAKE  EFFECT  ON  JANUARY
 FIRST,  TWO THOUSAND TWENTY-NINE, AND THAT THE COMMISSIONER PUBLISHES ON
 OR BEFORE EACH FOLLOWING OCTOBER FIRST TO TAKE EFFECT ON EACH  FOLLOWING
 JANUARY  FIRST, THE COMMISSIONER SHALL ADJUST THE CURRENT WAGE FOR PARA-
 GRAPH (C) OF THIS SUBDIVISION USING THE FORMULA SPECIFIED ABOVE IN  THIS
 PARAGRAPH.  FOR  PURPOSES  OF  SUBDIVISION  TWO  OF  THIS  SECTION, EACH
 PUBLISHED WAGE THAT INCREASES EACH THEN CURRENT MINIMUM  WAGE  SHALL  BE
 DEEMED  TO  BE  AN  INCREASE  IN HOURLY MINIMUM WAGE AS PROVIDED IN THIS
 SUBDIVISION.
   (E) The rates and schedules established [in paragraphs (a) and (b) of]
 UNDER this subdivision FOR NEW YORK CITY AND FOR  NASSAU,  SUFFOLK,  AND
 WESTCHESTER  COUNTIES  shall  not be deemed to be the minimum wage under
 this subdivision for purposes of the calculations specified in  subdivi-
 sions one and two of section five hundred twenty-seven of this chapter.
   § 4. Subdivision 6 of section 652 of the labor law is REPEALED.
   §  5. Section 665 of the labor law is renumbered section 669 and a new
 section 665 is added to read as follows:
   § 665. LOCAL WAGE ENFORCEMENT AUTHORITY.  A CITY WITH A POPULATION  OF
 ONE  MILLION  OR  MORE,  ACTING THROUGH ITS COMPTROLLER, MAY ENFORCE AND
 INVESTIGATE VIOLATIONS OF THE  STATE  MINIMUM  WAGE,  OTHER  STATE  WAGE
 REQUIREMENTS  ESTABLISHED  PURSUANT TO THIS ARTICLE, AND ANY OTHER LOCAL
 LAW, ORDINANCE, OR REGULATION REQUIRING PAYMENT OF  A  MINIMUM  WAGE  OR
 COMPENSATION, OR ESTABLISHING A LABOR STANDARD, FOR WORK PERFORMED WITH-
 IN  THE CITY'S GEOGRAPHIC BOUNDARIES. THE COMPTROLLER SHALL BE EMPOWERED
 TO ADOPT FURTHER ENFORCEMENT PROVISIONS, REMEDIES, PENALTIES, AND  OTHER
 IMPLEMENTING REGULATIONS. PROVIDED, HOWEVER, THE COMMISSIONER OF CONSUM-
 ER  AND WORKER PROTECTION OF SUCH A CITY OR ANY SUCCESSOR TO SUCH OFFICE
 MAY ALSO ENFORCE AND INVESTIGATE VIOLATIONS OF THE  STATE  MINIMUM  WAGE
 AND  OTHER  STATE WAGE REQUIREMENTS ESTABLISHED PURSUANT TO THIS ARTICLE
 IN THE COURSE OF ENFORCING OTHER LAWS THAT SUCH COMMISSIONER IS  CHARGED
 WITH  ENFORCING  AND  MAY  ORDER  ANY  AUTHORIZED REMEDIES OR PENALTIES.
 PROVIDED, FURTHER, NOTHING IN THIS SECTION SHALL LIMIT THE AUTHORITY  OF
 THE  DEPARTMENT  OF  LABOR OR ANY OTHER GOVERNMENT AGENCY TO ENFORCE THE
 STATE MINIMUM WAGE AND OTHER STATE WAGE REQUIREMENTS ESTABLISHED  PURSU-
 ANT TO THIS ARTICLE OR ANY OTHER LAW WITHIN THE GEOGRAPHIC BOUNDARIES OF
 A CITY WITH A POPULATION OF ONE MILLION OR MORE OR ELSEWHERE.
   § 6. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2023-S1978A (ACTIVE) - Details

Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §652, rpld §652 sub 6, ren §665 to be §669, add §665, Lab L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S9085
2021-2022: S3062

2023-S1978A (ACTIVE) - Summary

Increases the minimum wage annually; provides for the enforcement of the minimum wage; repeals certain provisions of law relating thereto.

2023-S1978A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1978A

SPONSOR: RAMOS
 
TITLE OF BILL:

An act to amend the labor law, in relation to raising the minimum wage
annually by a percentage which is based on inflation and providing for
the enforcement of such minimum wage; and to repeal subdivision 6 of
section 652 of the labor law relating thereto

 
PURPOSE OR GENERAL IDEA OF BILL:

Ensures that the minimum wage keeps up with rising prices.

 
SUMMARY OF PROVISIONS:

Section 1: This act shall be known and cited as the Raise the Wage Act

Section 2: Legislative findings

Section 3: Amends the labor law Section 652 to include rates of minimum
wage 2023, 2024, 2025, 2026 and index to inflation after said date.

After 2026, the Commissioner of Labor will publish a new, increased
minimum wage on or before October first of each year. The new wage will
be the current minimum wage increased by June. The June rate of
inflation as measured by the consumer price index for all urban consum-
ers (CPI-U). When inflation is positive, the new minimum wage takes
effect on December 31st.

Section 4: Subdivision 6 of section 652 of the labor law is REPEALED.

Section 5. Established local wage enforcement authority for a city of
one million or more.

Section 6: Effective date.

 
JUSTIFICATION:

In New York State, roughly one million workers--16.4% of New York
State's workforce-eam the minimum wage. Beginning in 2012, the nation-
wide Fight for Fifteen movement publicized the inadequacy of the minimum
wage and in part led state lawmakers to gradually increase the minimum
wage in New York. New York City reached a $15 minimum wage in 2019, and
the rest of downstate to attain a $15 minimum wage in 2021. The upstate
minimum wage is currently $14.20. Current law would increase upstate's
minimum wage each year according to inflation and other indicators as
determined by the Commissioner until it reaches $15.

Historically, yearly gains in inflation have decreased the value of the
minimum wage, chipping away at workers' purchasing power and leading to
hardship for many. Increases in minimum wage historically have not
occurred each year in New York State. Each year that inflation increases
and wages at the bottom do not, workers in the lowest-paying positions
struggle to pay bills, feed their families, and access transportation.
Across the state, minimum wage workers are disproportionately women and
people of color, groups that also face significant barriers to advance-
ment.


By joining eighteen other states that have tied the minimum wage to
inflation, minimum wage workers in New York State will maintain their
purchasing power without yearly legislative action.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S1978A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1978--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2023
                                ___________
 
 Introduced  by  Sens.  RAMOS,  BAILEY,  BRISPORT, BROUK, CLEARE, COMRIE,
   COONEY, GONZALEZ, GOUNARDES, HOYLMAN-SIGAL, JACKSON, KAVANAGH,  KRUEG-
   ER,  MYRIE, PARKER, RIVERA, SALAZAR -- 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, in relation to raising the  minimum  wage
   annually by a percentage which is based on inflation and providing for
   the  enforcement  of such minimum wage; and to repeal subdivision 6 of
   section 652 of the labor law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. This act shall be known and may be cited as the "raise the
 wage act".
   § 2. Legislative findings. As New Yorkers struggle  with  the  rapidly
 rising  cost  of  living,  their paychecks are not keeping up. The state
 minimum wage has been flat at $15 in New York city since  2019.  In  the
 New  York  city  suburbs it is also stalled at $15 and under current law
 will not increase further. And in the rest of the state, years after the
 legislature last acted to raise the minimum wage it is  still  gradually
 inching  up  to $15, but will not increase further until the legislature
 acts.
   At the same time, record inflation is causing the real  value  of  the
 minimum  wage to plummet across the state as consumers struggle with the
 rapidly rising cost of necessities. In New  York  city,  its  value  has
 already  fallen more than 15%, and is projected to fall a further 15% by
 2027, or even more if consumer price inflation does not moderate in 2023
 and 2024 as expected. This steep decline in the minimum wage is  revers-
 ing  the historic reductions in poverty and earnings inequality that the
 state achieved with the  $15  minimum  wage.  And  even  once  inflation
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04134-02-3
 S. 1978--A                          2

 
 returns to more typical levels, workers will continue to lose real wages
 as long as our minimum wage remains stagnant.
   While  in  2016  New York led the nation as the first state to adopt a
 $15 minimum wage, today it has fallen behind the many other  cities  and
 states that are raising their minimum wages well beyond $15. About fifty
 cities  and counties and two states will have minimum wages above $15 an
 hour as of January 2023, and a growing group will have minimum wages  of
 more  than $17 or $18 an hour. The fact that Yakima, Washington, Fresno,
 California, and Denver, Colorado will all have higher minimum wages than
 New York shows how far pay has fallen in the state.
   To fix this, first, the value of New York city's minimum wage needs to
 be restored by "catching it up" to where it would have been  if  it  had
 been  adjusted  steadily  each  year since 2019 to keep pace with rising
 prices and workforce productivity. That translates to raising the  mini-
 mum wage to $21.25 an hour by 2026.
   Second,  because  the  state  minimum wage in New York city's suburbs,
 including Nassau, Suffolk, and Westchester counties, is also stalled  at
 $15  and  those regions have housing and living costs that are almost as
 high as New York city, the minimum wage there  should  increase  at  the
 same rate.
   Third,  the  minimum  wage  in  the remainder of the state should also
 eventually catch up with the state-wide rate, but at a slower pace since
 wages and costs are lower there.
   Finally, once the minimum wage across the state catches up, it must be
 automatically adjusted or "indexed" each year so that  it  doesn't  fall
 behind  again.  That is the approach that 18 states and Washington, D.C.
 are already using to keep their minimum wages up to date. For  adjusting
 the minimum wage each year, the legislature should adopt the same formu-
 la  that  the  department  of  labor and the division of the budget used
 successfully to increase New York's upstate minimum  wage  in  2022  and
 2023. They have been adjusting the minimum wage so that it keeps up both
 with  rising  prices and also with any increases in worker productivity.
 This best practice ensures that underpaid  workers'  paychecks  maintain
 their  purchasing power and, that when there are gains in worker produc-
 tivity, that workers too share in  those  benefits.  This  approach  has
 resulted  in  steady, moderate increases in the upstate wage of 70 cents
 in 2022, and $1.00 in 2023. It should be  made  permanent  and  expanded
 state-wide.
   Many  of  our  lowest  paid  jobs across the state are publicly-funded
 human services jobs, in fields such as home care, childcare, and  mental
 health  care,  where  workers provide essential services on which we all
 rely. But the eroded minimum wage is holding down pay  for  these  vital
 caregivers  and making it impossible to fill these demanding jobs at the
 same time that demand for services has exploded  as  the  state's  popu-
 lation  ages  and the pandemic has stressed families and communities. To
 address this critical worker shortage, we need to  not  just  raise  the
 minimum wage significantly, but also to provide the state funding neces-
 sary  to  finance those raises in the state and city-contracted programs
 that employ these essential workers.
   New York's experience phasing in the  $15  minimum  wage  showed  that
 significant  wage  increases have been manageable for employers and that
 higher paychecks have put money back into  local  communities,  boosting
 consumer  spending  at  neighborhood  businesses. Studies by the federal
 reserve bank of New York of the impact in upstate counties, and  by  the
 New  York  city-based new school both found that New York's last minimum
 wage increase raised pay significantly without hurting employment - even
 S. 1978--A                          3
 
 in counties along the New York-Pennsylvania  border  where  the  minimum
 wage in our neighboring state is just $7.25.
   With the value of New York's minimum wage plummeting and rising prices
 squeezing  New  York's  working  families,  we  cannot afford to wait to
 restore a strong minimum wage for all New Yorkers.
   § 3. Subdivision 1 of section 652 of the  labor  law,  as  amended  by
 section  1  of  part  K of chapter 54 of the laws of 2016, is 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,
   $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, and until December 31, 2016, or,
 if  greater, such other wage as may be established by federal law pursu-
 ant to 29 U.S.C. section 206 or its successors or such other wage as may
 be established in accordance with the provisions of this article.
   (a) New York City. [(i) Large employers.] Every employer [of eleven or
 more employees] shall pay to each of its employees for each hour  worked
 in the city of New York a wage of not less than:
   $11.00 per hour on and after December 31, 2016,
   $13.00 per hour on and after December 31, 2017,
   $15.00 per hour on and after December 31, 2018,
   $17.25 ON AND AFTER JANUARY 1, 2024,
   $19.25 ON AND AFTER JANUARY 1, 2025,
   $21.25  ON  AND AFTER JANUARY 1, 2026, 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 established in accordance
 with the provisions of this article.
   [(ii)  Small  employers. Every employer of ten or less employees shall
 pay to each of its employees for each hour worked in  the  city  of  New
 York a wage of not less than:
   $10.50 per hour on and after December 31, 2016,
   $12.00 per hour on and after December 31, 2017,
   $13.50 per hour on and after December 31, 2018,
   $15.00 per hour on and after December 31, 2019,
   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  established in accordance with the provisions of this arti-
 cle.]
   (b) Remainder of downstate. Every employer shall pay to  each  of  its
 employees  for  each  hour worked in the counties of Nassau, Suffolk and
 Westchester a wage not less than:
   $10.00 per hour on and after December 31, 2016,
   $11.00 per hour on and after December 31, 2017,
   $12.00 per hour on and after December 31, 2018,
   $13.00 per hour on and after December 31, 2019,
   $14.00 per hour on and after December 31, 2020,
   $15.00 per hour on and after December 31, 2021,
   $17.25 ON AND AFTER JANUARY 1, 2024,
   $19.25 ON AND AFTER JANUARY 1, 2025,
   $21.25 ON AND AFTER JANUARY 1, 2026,
 S. 1978--A                          4
 
   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 established in accordance with the provisions of this article.
   (c)  Remainder  of  state.  Every  employer  shall  pay to each of its
 employees for each hour worked outside of the city of New York  and  the
 counties of Nassau, Suffolk, and Westchester, a wage of not less than:
   $9.70 on and after December 31, 2016,
   $10.40 on and after December 31, 2017,
   $11.10 on and after December 31, 2018,
   $11.80 on and after December 31, 2019,
   $12.50 on and after December 31, 2020,
   [and  on each following December thirty-first, a wage published by the
 commissioner on or before October first, based on the then current mini-
 mum wage increased by a percentage determined by  the  director  of  the
 budget in consultation with the commissioner, with the result rounded to
 the nearest five cents, totaling no more than fifteen dollars, where the
 percentage increase shall be based on indices including, but not limited
 to,  (i)  the  rate of inflation for the most recent twelve month period
 ending June of that year based on the consumer price index for all urban
 consumers on a national and seasonally unadjusted basis  (CPI-U),  or  a
 successor  index as calculated by the United States department of labor,
 (ii) the rate of state personal income growth  for  the  prior  calendar
 year, or a successor index, published by the bureau of economic analysis
 of the United States department of commerce, or (iii) wage growth;]
   $13.20 ON AND AFTER DECEMBER 31, 2021,
   $14.20 ON AND AFTER JANUARY 1, 2023,
   $16.00 ON AND AFTER JANUARY 1, 2024,
   $18.00 ON AND AFTER JANUARY 1, 2025,
   $20.00 ON AND AFTER JANUARY 1, 2026,
   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 established in accordance with the provisions of this article.
   (d) ANNUAL INCREASES. ON JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, AND
 ON  EACH FOLLOWING JANUARY FIRST, THE WAGES SET FORTH IN PARAGRAPHS (A),
 (B) AND (C) OF THIS SUBDIVISION  AND  ANY  OTHER  WAGES  ESTABLISHED  IN
 ACCORDANCE  WITH  THE  PROVISIONS  OF  THIS CHAPTER AND SET FORTH IN ANY
 MINIMUM WAGE ORDER, SHALL BE THE WAGES  PUBLISHED  BY  THE  COMMISSIONER
 PURSUANT TO THIS PARAGRAPH. THE COMMISSIONER SHALL PUBLISH SUCH WAGES ON
 OR  BEFORE OCTOBER FIRST, TWO THOUSAND TWENTY-SIX, AND ON EACH FOLLOWING
 OCTOBER FIRST. THE COMMISSIONER SHALL BASE EACH SUCH PUBLISHED  WAGE  ON
 EACH  THEN  CURRENT  WAGE  INCREASED  BY  THE  SUM  OF:  (I) THE RATE OF
 INFLATION, IF GREATER THAN ZERO, AS MEASURED BY THE CHANGE IN THE  AVER-
 AGE  FOR  THE  TWELVE MONTHS THROUGH JUNE OF THE CURRENT YEAR DIVIDED BY
 THE AVERAGE FOR THE TWELVE MONTHS THROUGH JUNE OF THE PRECEDING YEAR  IN
 THE CONSUMER PRICE INDEX FOR ALL URBAN WAGE EARNERS AND CLERICAL WORKERS
 ON  A  NATIONAL  AND SEASONALLY UNADJUSTED BASIS (CPI-W), OR A SUCCESSOR
 INDEX, AS CALCULATED BY THE UNITED STATES DEPARTMENT OF LABOR; AND  (II)
 LABOR  PRODUCTIVITY  GROWTH,  IF  GREATER  THAN ZERO, AS MEASURED BY THE
 CHANGE IN THE AVERAGE QUARTERLY INDEX FOR THE FOUR QUARTERS THROUGH  THE
 SECOND  QUARTER  OF  THE  CURRENT  YEAR DIVIDED BY THE AVERAGE QUARTERLY
 INDEX FOR THE FOUR QUARTERS THROUGH THE SECOND QUARTER OF THE  PRECEDING
 YEAR  IN  NATIONAL  LABOR PRODUCTIVITY (OUTPUT PER HOUR) OF ALL EMPLOYED
 PERSONS IN THE NONFARM BUSINESS SECTOR, OR A SUCCESSOR INDEX, AS  CALCU-
 LATED  BY THE UNITED STATES DEPARTMENT OF LABOR, WITH THE SUM ROUNDED TO
 THE NEAREST MULTIPLE OF FIVE CENTS. THE COMMISSIONER SHALL PUBLISH  SUCH
 WAGES  ON  OR  BEFORE  OCTOBER FIRST, TWO THOUSAND TWENTY-SIX, AND ON OR
 S. 1978--A                          5
 
 BEFORE EACH FOLLOWING OCTOBER FIRST.  PROVIDED, HOWEVER, THAT  THE  WAGE
 SET  FORTH  FOR  PARAGRAPH (C) OF THIS SUBDIVISION THAT THE COMMISSIONER
 PUBLISHES ON OR BEFORE OCTOBER FIRST, TWO THOUSAND  TWENTY-SIX  TO  TAKE
 EFFECT  ON JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN SHALL BE A WAGE THAT
 IS EQUAL TO THE WAGE THAT THE COMMISSIONER PUBLISHES TO TAKE  EFFECT  ON
 JANUARY  FIRST,  TWO THOUSAND TWENTY-SEVEN FOR PARAGRAPHS (A) AND (B) OF
 THIS SUBDIVISION. THEREAFTER, BEGINNING WITH THE WAGE THAT  THE  COMMIS-
 SIONER  PUBLISHES  FOR  PARAGRAPH  (C)  OF THIS SUBDIVISION ON OR BEFORE
 OCTOBER FIRST, TWO THOUSAND  TWENTY-SEVEN  TO  TAKE  EFFECT  ON  JANUARY
 FIRST, TWO THOUSAND TWENTY-EIGHT, AND THAT THE COMMISSIONER PUBLISHES ON
 OR  BEFORE EACH FOLLOWING OCTOBER FIRST TO TAKE EFFECT ON EACH FOLLOWING
 JANUARY FIRST, THE COMMISSIONER SHALL ADJUST THE CURRENT WAGE FOR  PARA-
 GRAPH  (C) OF THIS SUBDIVISION USING THE FORMULA SPECIFIED ABOVE IN THIS
 PARAGRAPH. FOR  PURPOSES  OF  SUBDIVISION  TWO  OF  THIS  SECTION,  EACH
 PUBLISHED  WAGE  THAT  INCREASES EACH THEN CURRENT MINIMUM WAGE SHALL BE
 DEEMED TO BE AN INCREASE IN HOURLY MINIMUM  WAGE  AS  PROVIDED  IN  THIS
 SUBDIVISION.
   (E) The rates and schedules established [in paragraphs (a) and (b) of]
 UNDER  this  subdivision  FOR NEW YORK CITY AND FOR NASSAU, SUFFOLK, AND
 WESTCHESTER COUNTIES shall not be deemed to be the  minimum  wage  under
 this  subdivision for purposes of the calculations specified in subdivi-
 sions one and two of section five hundred twenty-seven of this chapter.
   § 4. Subdivision 6 of section 652 of the labor law is REPEALED.
   § 5. Section 665 of the labor law is renumbered section 669 and a  new
 section 665 is added to read as follows:
   §  665. LOCAL WAGE ENFORCEMENT AUTHORITY.  A CITY WITH A POPULATION OF
 ONE MILLION OR MORE, ACTING THROUGH ITS  COMPTROLLER,  MAY  ENFORCE  AND
 INVESTIGATE  VIOLATIONS  OF  THE  STATE  MINIMUM  WAGE, OTHER STATE WAGE
 REQUIREMENTS ESTABLISHED PURSUANT TO THIS ARTICLE, AND ANY  OTHER  LOCAL
 LAW,  ORDINANCE,  OR  REGULATION  REQUIRING PAYMENT OF A MINIMUM WAGE OR
 COMPENSATION, OR ESTABLISHING A LABOR STANDARD FOR WORK PERFORMED WITHIN
 THE CITY'S GEOGRAPHIC BOUNDARIES. THE COMPTROLLER SHALL BE EMPOWERED  TO
 ADOPT  FURTHER  ENFORCEMENT  PROVISIONS,  REMEDIES, PENALTIES, AND OTHER
 IMPLEMENTING REGULATIONS. PROVIDED, HOWEVER, THE COMMISSIONER OF CONSUM-
 ER AND WORKER PROTECTION OF SUCH A CITY OR ANY SUCCESSOR TO SUCH  OFFICE
 MAY  ALSO  ENFORCE  AND INVESTIGATE VIOLATIONS OF THE STATE MINIMUM WAGE
 AND OTHER STATE WAGE REQUIREMENTS ESTABLISHED PURSUANT TO  THIS  ARTICLE
 IN  THE COURSE OF ENFORCING OTHER LAWS THAT SUCH COMMISSIONER IS CHARGED
 WITH ENFORCING AND MAY  ORDER  ANY  AUTHORIZED  REMEDIES  OR  PENALTIES.
 PROVIDED,  FURTHER, NOTHING IN THIS SECTION SHALL LIMIT THE AUTHORITY OF
 THE DEPARTMENT OF LABOR OR ANY OTHER GOVERNMENT AGENCY  TO  ENFORCE  THE
 STATE  MINIMUM WAGE AND OTHER STATE WAGE REQUIREMENTS ESTABLISHED PURSU-
 ANT TO THIS ARTICLE OR ANY OTHER LAW WITHIN THE GEOGRAPHIC BOUNDARIES OF
 A CITY WITH A POPULATION OF ONE MILLION OR MORE OR ELSEWHERE.
   § 6. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S1978A

Sponsored By

Current Bill Status - In Senate Committee Labor Committee

Bill Amendments

co-Sponsors

2023-S1978 - Details

2023-S1978 - Summary

2023-S1978 - Sponsor Memo

2023-S1978 - Bill Text download pdf

co-Sponsors

2023-S1978A (ACTIVE) - Details

2023-S1978A (ACTIVE) - Summary

2023-S1978A (ACTIVE) - Sponsor Memo

2023-S1978A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1978A

Share this bill

Sponsored By

Current Bill Status - In Senate Committee Labor Committee

Bill Amendments

co-Sponsors

2023-S1978 - Details

2023-S1978 - Summary

2023-S1978 - Sponsor Memo

2023-S1978 - Bill Text download pdf

co-Sponsors

2023-S1978A (ACTIVE) - Details

2023-S1978A (ACTIVE) - Summary

2023-S1978A (ACTIVE) - Sponsor Memo

2023-S1978A (ACTIVE) - Bill Text download pdf

Comments