NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2203
SPONSOR: Joyner 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 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Section 4: Subdivision 6 of section 652 of the labor law is REPEALED.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.
STATE OF NEW YORK
________________________________________________________________________
2203
2023-2024 Regular Sessions
IN ASSEMBLY
January 24, 2023
___________
Introduced by M. of A. JOYNER, BRONSON, DINOWITZ, HEVESI, COLTON, GIBBS,
L. ROSENTHAL, DICKENS, ARDILA, BORES, EPSTEIN, GONZALEZ-ROJAS, KELLES,
MAMDANI, RAGA, SHRESTHA -- read once and referred 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 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:
1 Section 1. Subdivision 1 of section 652 of the labor law, as amended
2 by section 1 of part K of chapter 54 of the laws of 2016, is amended to
3 read as follows:
4 1. Statutory. Every employer shall pay to each of its employees for
5 each hour worked a wage of not less than:
6 $4.25 on and after April 1, 1991,
7 $5.15 on and after March 31, 2000,
8 $6.00 on and after January 1, 2005,
9 $6.75 on and after January 1, 2006,
10 $7.15 on and after January 1, 2007,
11 $8.00 on and after December 31, 2013,
12 $8.75 on and after December 31, 2014,
13 $9.00 on and after December 31, 2015, and until December 31, 2016, or,
14 if greater, such other wage as may be established by federal law pursu-
15 ant to 29 U.S.C. section 206 or its successors or such other wage as may
16 be established in accordance with the provisions of this article.
17 (a) New York City. [(i) Large employers.] Every employer [of eleven or
18 more employees] shall pay to each of its employees for each hour worked
19 in the city of New York a wage of not less than:
20 $11.00 per hour on and after December 31, 2016,
21 $13.00 per hour on and after December 31, 2017,
22 $15.00 per hour on and after December 31, 2018,
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06860-01-3
A. 2203 2
1 $17.25 on and after January 1, 2025,
2 $19.25 on and after January 1, 2026,
3 $21.25 on and after January 1, 2027, or, if greater, such other wage
4 as may be established by federal law pursuant to 29 U.S.C. section 206
5 or its successors or such other wage as may be established in accordance
6 with the provisions of this article.
7 [(ii) Small employers. Every employer of ten or less employees shall
8 pay to each of its employees for each hour worked in the city of New
9 York a wage of not less than:
10 $10.50 per hour on and after December 31, 2016,
11 $12.00 per hour on and after December 31, 2017,
12 $13.50 per hour on and after December 31, 2018,
13 $15.00 per hour on and after December 31, 2019, or, if greater, such
14 other wage as may be established by federal law pursuant to 29 U.S.C.
15 section 206 or its successors or such other wage as may be established
16 in accordance with the provisions of this article.]
17 (b) Remainder of downstate. Every employer shall pay to each of its
18 employees for each hour worked in the counties of Nassau, Suffolk and
19 Westchester a wage not less than:
20 $10.00 per hour on and after December 31, 2016,
21 $11.00 per hour on and after December 31, 2017,
22 $12.00 per hour on and after December 31, 2018,
23 $13.00 per hour on and after December 31, 2019,
24 $14.00 per hour on and after December 31, 2020,
25 $15.00 per hour on and after December 31, 2021,
26 $17.25 on and after January 1, 2025,
27 $19.25 on and after January 1, 2026,
28 $21.25 on and after January 1, 2027, or, if greater, such other wage
29 as may be established by federal law pursuant to 29 U.S.C. section 206
30 or its successors or such other wage as may be established in accordance
31 with the provisions of this article.
32 (c) Remainder of state. Every employer shall pay to each of its
33 employees for each hour worked outside of the city of New York and the
34 counties of Nassau, Suffolk, and Westchester, a wage of not less than:
35 $9.70 on and after December 31, 2016,
36 $10.40 on and after December 31, 2017,
37 $11.10 on and after December 31, 2018,
38 $11.80 on and after December 31, 2019,
39 $12.50 on and after December 31, 2020,
40 $14.20 on and after January 1, 2024,
41 $16.00 on and after January 1, 2025,
42 $18.00 on and after January 1, 2026,
43 $20.00 on and after January 1, 2027,
44 [and on each following December thirty-first, a wage published by the
45 commissioner on or before October first, based on the then current mini-
46 mum wage increased by a percentage determined by the director of the
47 budget in consultation with the commissioner, with the result rounded to
48 the nearest five cents, totaling no more than fifteen dollars, where the
49 percentage increase shall be based on indices including, but not limited
50 to, (i) the rate of inflation for the most recent twelve month period
51 ending June of that year based on the consumer price index for all urban
52 consumers on a national and seasonally unadjusted basis (CPI-U), or a
53 successor index as calculated by the United States department of labor,
54 (ii) the rate of state personal income growth for the prior calendar
55 year, or a successor index, published by the bureau of economic analysis
56 of the United States department of commerce, or (iii) wage growth;] or,
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1 if greater, such other wage as may be established by federal law pursu-
2 ant to 29 U.S.C. section 206 or its successors or such other wage as may
3 be established in accordance with the provisions of this article.
4 (d) Annual increases. On January first, two thousand twenty-eight, and
5 on each following January first, the wages set forth in paragraphs (a),
6 (b) and (c) of this subdivision and any other wages established in
7 accordance with the provisions of this chapter and set forth in any
8 minimum wage order, shall be the wages published by the commissioner
9 pursuant to this paragraph. The commissioner shall publish such wages on
10 or before October first, two thousand twenty-seven, and on or before
11 each following October first. The commissioner shall base each such
12 published wage on each then current wage increased by the sum of: (1)
13 the rate of inflation, if greater than zero, as measured by the change
14 in the consumer price index for all urban wage earners and clerical
15 workers on a national and seasonally unadjusted basis (CPI-W), or a
16 successor index, as calculated by the United States department of labor;
17 and (2) labor productivity growth, if greater than zero, as measured by
18 the change in the average quarterly index for the four quarters through
19 the second quarter of the current year divided by the average quarterly
20 index for the four quarters through the second quarter of the preceding
21 year in national labor productivity (output per hour) of all employed
22 persons in the nonfarm business sector, or a successor index, as calcu-
23 lated by the United States department of labor, with the sum rounded to
24 the nearest multiple of five cents. The commissioner shall publish such
25 wages on or before October first, two thousand twenty-seven, and on or
26 before each following October first. Provided, however, that the wage
27 set forth for paragraph (c) of this subdivision that the commissioner
28 publishes on or before October first, two thousand twenty-seven to take
29 effect on January first, two thousand twenty-eight shall be a wage that
30 is equal to the wage that the commissioner publishes to take effect on
31 January first, two thousand twenty-eight for paragraphs (a) and (b) of
32 this subdivision. Thereafter, beginning with the wage that the commis-
33 sioner publishes for paragraph (c) of this subdivision on or before
34 October first, two thousand twenty-eight to take effect on January
35 first, two thousand twenty-nine, and that the commissioner publishes on
36 or before each following October first to take effect on each following
37 January first, the commissioner shall adjust the current wage for para-
38 graph (c) of this subdivision using the formula specified above in this
39 paragraph. For purposes of subdivision two of this section, each
40 published wage that increases each then current minimum wage shall be
41 deemed to be an increase in hourly minimum wage as provided in this
42 subdivision.
43 (e) The rates and schedules established [in paragraphs (a) and (b) of]
44 under this subdivision for New York city and Nassau, Suffolk, and West-
45 chester counties shall not be deemed to be the minimum wage under this
46 subdivision for purposes of the calculations specified in subdivisions
47 one and two of section five hundred twenty-seven of this chapter.
48 § 2. Subdivision 6 of section 652 of the labor law is REPEALED.
49 § 3. This act shall take effect immediately.
