BILL NO A00038A SAME AS No same as SPONSOR Wright (MS) COSPNSR Silver, Heastie, Morelle, Farrell, Hooper, Rivera, Peoples-Stokes, Jacobs, Markey, Miller, Abinanti, Skartados, Sepulveda MLTSPNSR Abbate, Arroyo, Aubry, Benedetto, Braunstein, Brennan, Bronson, Brook-Krasny, Buchwald, Cahill, Camara, Clark, Colton, Cook, Crespo, Cymbrowitz, DenDekker, Dinowitz, Englebright, Fahy, Galef, Gantt, Glick, Gottfried, Hennessey, Hikind, Jaffee, Kavanagh, Kim, Lavine, Lentol, Lifton, Magnarelli, McDonald, Millman, Mosley, Moya, Nolan, Ortiz, Otis, Paulin, Perry, Pretlow, Ramos, Roberts, Robinson, Rodriguez, Rosenthal, Rozic, Russell, Ryan, Santabarbara, Scarborough, Schimel, Simotas, Skoufis, Solages, Steck, Stirpe, Sweeney, Thiele, Titone, Titus, Weinstein, Weisenberg, Weprin Amd SS651 & 652, Lab L Relates to the minimum wage and makes technical changes to the labor law relating thereto.Go to top
BILL NO A00038A 01/09/2013 referred to labor 02/14/2013 amend and recommit to labor 02/14/2013 print number 38a 03/04/2013 reported referred to ways and means 03/05/2013 reported referred to rules 03/05/2013 reported 03/05/2013 rules report cal.24 03/05/2013 ordered to third reading rules cal.24 03/05/2013 passed assembly 03/05/2013 delivered to senate 03/05/2013 REFERRED TO LABOR 01/08/2014 DIED IN SENATE 01/08/2014 RETURNED TO ASSEMBLY 01/08/2014 ordered to third reading cal.3 01/22/2014 committed to laborGo to top
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A38A SPONSOR: Wright (MS)
TITLE OF BILL: An act to amend the labor law, in relation to the minimum wage and making technical corrections relating thereto   PURPOSE OR GENERAL IDEA OF BILL: Would raise the statutory minimum wage from $7.25 to $9.00 per hour on and after January 1, 2014 and provide that on each January 1st thereaft- er, the rate shall be indexed to inflation.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 would amend § 651 of the Labor Law to require the state, local governments or political subdivisions thereof, to pay their employees the statutory minimum wage under article nineteen of the Labor Law. Section 2 makes a conforming change to the definition of "employer" in § 651 to include a state or municipal government or a political subdivi- sion thereof. Section 3 would amend subdivisions 1, 4 and 5 of § 652 of the Labor Law to provide that effective January 1, 2014 the statutory minimum wage shall be $9.00 per hour, and for food service workers receiving a mini- mum cash wage, including those for which employers are authorized to make wage deductions for meals and lodging, $6.21 per hour. It would also require that beginning on January 1, 2015 and annually thereafter on such date, the minimum wage shall be indexed to inflation by the commissioner of the Department of Labor. Section 4 is the effective date.   JUSTIFICATION: When Congress enacted the FLSA in 1938 and prescribed a minimum wage, it was intended to ensure that low-wage workers would earn, at the very least, a liveable wage. Over the years, data has shown that the federal government's actions to preserve this standard against the erosive power of inflation have fallen decades behind. According to the United States Bureau of Labor Statistics, the nation's minimum wage peaked in 1968 at the 2010 equivalent of $9.60. Additionally, if the 1968 minimum wage of $1.50 had been indexed to inflation, it would have had the purchasing power of $10.03 today. By this comparison, it is clear that the current minimum wage of $7.25 is not nearly sufficient to meet the rising costs of food and shelter, let alone provide for healthcare, transportation, child care and other necessities for New Yorkers and their families. The annual income for a NYS full-time minimum wage worker has not exceeded the federal poverty threshold since 1979 and even more daunting, is the fact that the annual gap between the two continues to grow steadily. In 2010, there were over 264,000 people in NYS earning at or below the minimum wage, many of which reside within the New York City metropolitan area, the area ranked as having the highest cost of living in the nation. Historically, the highest proportion (14%) of workers that earn at or below the federal minimum wage was in service occupations, with nearly half of that number being employed in the leisure and hospitality industry, primarily in restaurants and other food services. With a rela- tive cost of living that far exceeds the national average it is imper- ative that the wage standards in NYS be reflective of these facts. The guarantee of a livable wage not only benefits workers and their families, it is also a direct benefit for the State's overall economy as it is widely proven in consumer trends that lower wage earners are more likely to reinvest any disposable income into their local businesses. Currently, there are ten states whose minimum wages are statutorily required adjusted annually, to reflect changes in the consumer price index, and three with proposals pending to do so. This safeguard ensures that despite delays in Congressional action to increase the minimum wage under the FLSA, the wage laws in NYS will continue to provide for its residents.   PRIOR LEGISLATIVE HISTORY: 2012: A.9148 (Wright)- Passed Assembly   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined.   EFFECTIVE DATE: Immediate.
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STATE OF NEW YORK ________________________________________________________________________ 38--A 2013-2014 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2013 ___________ Introduced by M. of A. WRIGHT, SILVER, HEASTIE, MORELLE, FARRELL, HOOP- ER, RIVERA, PEOPLES-STOKES, JACOBS, MARKEY, GIBSON, MILLER, ABINANTI -- Multi-Sponsored by -- M. of A. ABBATE, ARROYO, AUBRY, BARRON, BENE- DETTO, BOYLAND, BRAUNSTEIN, BRENNAN, BRONSON, BROOK-KRASNY, BUCHWALD, CAHILL, CAMARA, CASTRO, CLARK, COLTON, COOK, CRESPO, CYMBROWITZ, DenDEKKER, DINOWITZ, ENGLEBRIGHT, ESPINAL, FAHY, GALEF, GANTT, GLICK, GOTTFRIED, HENNESSEY, HIKIND, JAFFEE, KAVANAGH, KIM, LAVINE, LENTOL, LIFTON, V. LOPEZ, MAGNARELLI, MAISEL, McDONALD, MILLMAN, MOSLEY, MOYA, NOLAN, ORTIZ, OTIS, PAULIN, PERRY, PRETLOW, RAMOS, ROBERTS, ROBINSON, RODRIGUEZ, ROSA, ROSENTHAL, ROZIC, RUSSELL, RYAN, SANTABARBARA, SCAR- BOROUGH, SCHIMEL, SEPULVEDA, SIMANOWITZ, SIMOTAS, SKOUFIS, SOLAGES, STECK, STEVENSON, STIRPE, SWEENEY, THIELE, TITONE, TITUS, WEINSTEIN, WEISENBERG, WEPRIN -- read once and referred to the Committee on Labor -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the labor law, in relation to the minimum wage and making technical corrections relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (n) of subdivision 5 of section 651 of the labor 2 law, as amended by chapter 481 of the laws of 2010, is amended to read 3 as follows: 4 (n) by [ a] the federal[ , state or municipal] government [ or political5 subdivision thereof]. The exclusions from the term "employee" contained 6 in this subdivision shall be as defined by regulations of the commis- 7 sioner; or 8 § 2. Subdivision 6 of section 651 of the labor law, as amended by 9 chapter 281 of the laws of 2002, is amended to read as follows: 10 6. "Employer" includes any individual, partnership, association, 11 corporation, limited liability company, business trust, legal represen- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. A LBD00728-02-3A. 38--A 2 1 tative, state or municipal government or political subdivision thereof, 2 or any organized group of persons acting as employer. 3 § 3. Subdivisions 1, 4 and 5 of section 652 of the labor law, as 4 amended by chapter 747 of the laws of 2004, are amended to read as 5 follows: 6 1. Statutory. Every employer shall pay to each of its employees for 7 each hour worked a wage of not less than: 8 $4.25 on and after April 1, 1991, 9 $5.15 on and after March 31, 2000, 10 $6.00 on and after January 1, 2005, 11 $6.75 on and after January 1, 2006, 12 $7.15 on and after January 1, 2007, 13 $9.00 on and after January 1, 2014, 14 and on and after January 1, 2015 and on each following January first, 15 the commissioner shall calculate and establish an adjusted minimum wage 16 rate by increasing the then current minimum wage rate by the rate of 17 inflation for the most recent twelve month period available prior to 18 each January first using the consumer price index-all urban consumers, 19 CPI-U, or a successor index as calculated by the United States depart- 20 ment of labor, if such rate of inflation is greater than zero percent, 21 or, if greater, such other wage as may be established by federal law 22 pursuant to 29 U.S.C. section 206 or its successors or such other wage 23 as may be established in accordance with the provisions of this article. 24 4. Notwithstanding subdivisions one and two of this section, the wage 25 for an employee who is a food service worker receiving tips shall be a 26 cash wage of at least three dollars and thirty cents per hour on or 27 after March thirty-first, two thousand; three dollars and eighty-five 28 cents on or after January first, two thousand five; at least four 29 dollars and thirty-five cents on or after January first, two thousand 30 six; [ and] at least four dollars and sixty cents on or after January 31 first, two thousand seven; and at least six dollars and twenty-one cents 32 on or after January first, two thousand fourteen; and on or after Janu- 33 ary first, two thousand fifteen and on each following January first, the 34 commissioner shall calculate and establish an adjusted minimum wage rate 35 by increasing the then current minimum wage rate by the rate of 36 inflation for the most recent twelve month period available prior to 37 each January first using the consumer price index-all urban consumers, 38 CPI-U, or a successor index as calculated by the United States depart- 39 ment of labor, if such rate of inflation is greater than zero percent, 40 provided that the tips of such an employee, when added to such cash 41 wage, are equal to or exceed the minimum wage in effect pursuant to 42 subdivision one of this section and provided further that no other cash 43 wage is established pursuant to section six hundred fifty-three of this 44 article. In the event the cash wage payable under the Fair Labor Stand- 45 ards Act (29 United States Code Sec. 203 (m), as amended), is increased 46 after enactment of this subdivision, the cash wage payable under this 47 subdivision shall automatically be increased by the proportionate 48 increase in the cash wage payable under such federal law, and will be 49 immediately enforceable as the cash wage payable to food service workers 50 under this article. 51 5. Notwithstanding subdivisions one and two of this section, meal and 52 lodging allowances for a food service worker receiving a cash wage 53 amounting to three dollars and thirty cents per hour on or after March 54 thirty-first, two thousand; three dollars and eighty-five cents on or 55 after January first, two thousand five; four dollars and thirty-five 56 cents on or after January first, two thousand six; [ and] four dollarsA. 38--A 3 1 and sixty cents on or after January first, two thousand seven; six 2 dollars and twenty-one cents on or after January first, two thousand 3 fourteen; and on or after January first, two thousand fifteen and on 4 each following January first, the commissioner shall calculate and 5 establish an adjusted minimum wage rate by increasing the then current 6 minimum wage rate by the rate of inflation for the most recent twelve 7 month period available prior to each March thirty-first using the 8 consumer price index-all urban consumers, CPI-U, or a successor index as 9 calculated by the United States department of labor, if such rate of 10 inflation is greater than zero percent, shall not increase more than 11 two-thirds of the increase required by subdivision two of this section 12 as applied to state wage orders in effect pursuant to subdivision one of 13 this section. 14 § 4. This act shall take effect immediately.