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A00038 Summary:

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.
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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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