A00038 Summary:

BILL NO    A00038A

SAME AS    No same as 

SPONSOR    Wright (MS)

COSPNSR    Silver, Heastie, Morelle, Farrell, Hooper, Rivera, Peoples-Stokes,
           Jacobs, Markey, Gibson, Miller, Abinanti, Skartados, Sepulveda

MLTSPNSR   Abbate, Arroyo, Aubry, Barron, Benedetto, Boyland, Braunstein,
           Brennan, Bronson, Brook-Krasny, Buchwald, Cahill, Camara, Clark,
           Colton, Cook, Crespo, Cymbrowitz, DenDekker, Dinowitz, Englebright,
           Espinal, Fahy, Galef, Gantt, Glick, Gottfried, Hennessey, Hikind,
           Jaffee, Kavanagh, Kim, Lavine, Lentol, Lifton, Magnarelli, Maisel,
           McDonald, Millman, Mosley, Moya, Nolan, Ortiz, Otis, Paulin, Perry,
           Pretlow, Ramos, Roberts, Robinson, Rodriguez, Rosa, Rosenthal, Rozic,
           Russell, Ryan, Santabarbara, Scarborough, Schimel, Simanowitz,
           Simotas, Skoufis, Solages, Steck, Stevenson, 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.
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A00038 Actions:

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
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A00038 Votes:

A00038A03/05/2013 102/44
AbbateYClarkYGanttYKavanagYMcKevitNORaiaNOSolagesY
AbinantYColtonYGarbariNOKearnsYMcLaughNORamosYStecNO
ArroyoYCookYGibsonYKellnerYMillerYReilichNOSteckY
AubryYCorwinNOGiglioNOKimYMillmanYRiveraYStevensY
BarclayNOCrespoYGjonajYKolbNOMontesaNORobertsYStirpeY
BarrettYCrouchNOGlickYLalorNOMorelleYRobinsoYSweeneyY
BarronERCurranNOGoldfedYLavineYMosleyYRodriguYTediscoNO
BenedetYCusickYGoodellNOLentolYMoyaYRosaYTenneyNO
BlankenNOCymbrowYGottfriYLiftonYNojayNORosenthYThieleY
BorelliNODenDekkYGrafNOLope PDNONolanYRozicYTitoneY
BoylandERDinowitYGuntherYLope VJEROaksNORussellYTitusY
BraunstYDiPietrNOHawleyNOLosquadERO'DonneYRyanYWalterNO
BrennanYDupreyNOHeastieYLupardoYOrtizYSaladinNOWeinsteY
BrindisYEnglebrYHennessYLupinacNOOtisYSantabaYWeisenbY
BronsonYEspinalYHevesiYMageeNOPalmesaNOScarborYWeprinY
Brook KYFahyYHikindYMagnareYPaulinYSchimelYWrightY
BuchwalYFarrellYHooperYMaiselYPeoplesYSchimmiNOZebrowsY
ButlerNOFinchNOJacobsYMalliotNOPerryYSepulveYMr SpkrY
CahillYFitzpatNOJaffeeYMarkeyYPretlowYSimanowY
CamaraYFriendNOJohnsNOMayerYQuartYSimotasY
CastroYGabryszNOJordanNOMcDonalYRaNOSkartadY
CerettoYGalefYKatzNOMcDonouNORabbittNOSkoufisY

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A00038 Memo:

BILL NUMBER:A38A

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
thereafter, the rate shall be indexed to inflation.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 would amend S 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
S 651 to include a state or municipal government or a political
subdivision thereof.

Section 3 would amend subdivisions 1, 4 and 5 of S 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
minimum 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 relative cost of living that far exceeds the
national average it is imperative 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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A00038 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         38--A

                              2013-2014 Regular Sessions

                                 I N  A S S E M B L Y

                                      (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  political
    5  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    S  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                                                          LBD00728-02-3
       A. 38--A                            2

    1  tative, STATE OR MUNICIPAL GOVERNMENT OR POLITICAL SUBDIVISION  THEREOF,
    2  or any organized group of persons acting as employer.
    3    S  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  dollars
       A. 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    S 4. This act shall take effect immediately.
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