A09148 Summary:

BILL NOA09148
 
SAME ASSAME AS S06413
 
SPONSORWright (MS)
 
COSPNSRSilver, Canestrari, Farrell, Hooper, Rivera J, Skartados, Kellner
 
MLTSPNSRAbbate, Abinanti, Arroyo, Aubry, Barron, Benedetto, Boyland, Braunstein, Brennan, Bronson, Brook-Krasny, Cahill, Camara, Castro, Clark, Colton, Cook, Crespo, Cymbrowitz, DenDekker, Dinowitz, Englebright, Espinal, Galef, Gantt, Gibson, Glick, Gottfried, Heastie, Hikind, Jacobs, Jaffee, Jeffries, Kavanagh, Lancman, Lavine, Lentol, Lifton, Linares, Lopez V, Magnarelli, Maisel, Malliotakis, Markey, McEneny, Meng, Miller M, Millman, Moya, Nolan, Paulin, Peoples-Stokes, Perry, Pretlow, Ramos, Reilly, Rivera N, Rivera P, Roberts, Robinson, Rodriguez, Rosenthal, Russell, Ryan, Scarborough, Schimel, Simanowitz, Simotas, Stevenson, 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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A09148 Floor Votes:

DATE:05/15/2012Assembly Vote  YEA/NAY: 98/49
AbbateYCerettoYGlickYLentolYMurrayNORyanY
AbinantiYClarkYGoldfederYLiftonYNolanYSaladinoNO
AmedoreNOColtonYGoodellNOLinaresYOaksNOSaywardNO
ArroyoYConteERGottfriedYLope P NOO'DonnellYScarboroughY
AubryYCookYGrafNOLope V EROrtizYSchimelY
BarclayNOCorwinNOGuntherYLosquadroNOPalmesanoNOSchimmingerNO
BarrettYCrespoYHannaNOLupardoYPaulinYSimanowitzY
BarronYCrouchNOHawleyNOMageeNOPeoples StokesYSimotasY
BenedettoYCurranNOHeastieYMagnarelliYPerryYSkartadosY
BlankenbushNOCusickYHevesiERMaiselYPretlowYSmardzNO
BoylandYCymbrowitzYHikindNOMalliotakisNOQuartYStevensonY
BoyleNODenDekkerYHooperYMarkeyYRaNOSweeneyY
BraunsteinYDinowitzYJacobsYMayerYRabbittNOTediscoNO
BrennanYDupreyNOJaffeeYMcDonoughNORaiaNOTenneyNO
BrindisiNOEnglebrightYJeffriesYMcEnenyYRamosYThieleY
BronsonYEspinalYJohnsNOMcKevittNOReilichNOTitoneY
Brook KrasnyYFarrellYJordanNOMcLaughlinNOReillyYTitusY
BurlingNOFinchNOKatzNOMengYRive J YTobaccoNO
ButlerNOFitzpatrickNOKavanaghYMill D NORive N YWalterNO
CahillYFriendNOKearnsYMill J YRive P YWeinsteinY
CalhounNOGabryszakYKellnerYMill M YRobertsYWeisenbergY
CamaraYGalefYKolbNOMillmanYRobinsonYWeprinY
CanestrariYGanttYLancmanYMontesanoNORodriguezYWrightY
CastelliYGibsonYLatimerYMorelleYRosenthalYZebrowskiY
CastroYGiglioNOLavineYMoyaYRussellYMr SpkrY

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A09148 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9148
 
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 $8.50 per hour on and after January 1, 2013 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, 2013 the statutory minimum wage shall be $8.50 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, $5.86 per hour. It would also require that beginning on January 1, 2014 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: This is new legislation.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined.   EFFECTIVE DATE: Immediate.
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A09148 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9148
 
                   IN ASSEMBLY
 
                                    January 30, 2012
                                       ___________
 
        Introduced  by  M.  of  A.  WRIGHT, SILVER, CANESTRARI, FARRELL, HOOPER,
          J. RIVERA -- Multi-Sponsored by -- M. of A. ABBATE, ABINANTI,  ARROYO,
          AUBRY,  BARRON,  BENEDETTO,  BOYLAND,  BRAUNSTEIN,  BRENNAN,  BRONSON,
          BROOK-KRASNY, CAHILL, CAMARA, CASTRO,  CLARK,  COLTON,  COOK,  CRESPO,
          CYMBROWITZ,  DenDEKKER,  DINOWITZ, ENGLEBRIGHT, ESPINAL, GALEF, GANTT,

          GIBSON, GLICK, GOTTFRIED, HEASTIE, HIKIND, JACOBS,  JAFFEE,  JEFFRIES,
          KAVANAGH,  LANCMAN, LAVINE, LENTOL, LIFTON, LINARES, V. LOPEZ, MAGNAR-
          ELLI, MAISEL, MARKEY, McENENY, MENG, M. MILLER, MILLMAN, MOYA,  NOLAN,
          PAULIN,  PEOPLES-STOKES,  PERRY,  PRETLOW,  RAMOS,  REILLY, N. RIVERA,
          P. RIVERA, ROBERTS, ROBINSON,  RODRIGUEZ,  ROSENTHAL,  RUSSELL,  RYAN,
          SCARBOROUGH, SCHIMEL, SIMANOWITZ, SIMOTAS, STEVENSON, SWEENEY, THIELE,
          TITONE, TITUS, WEINSTEIN, WEISENBERG, WEPRIN -- read once and referred
          to the Committee on Labor
 
        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    § 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-
    12  tative,  state or municipal government or political subdivision thereof,
    13  or any organized group of persons acting as employer.
    14    § 3. Subdivisions 1, 4 and 5 of section  652  of  the  labor  law,  as

    15  amended  by  chapter  747  of  the  laws of 2004, are amended to read as
    16  follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11388-05-2

        A. 9148                             2
 
     1    1. Statutory. Every employer shall pay to each of  its  employees  for
     2  each hour worked a wage of not less than:
     3    $4.25 on and after April 1, 1991,
     4    $5.15 on and after March 31, 2000,
     5    $6.00 on and after January 1, 2005,
     6    $6.75 on and after January 1, 2006,
     7    $7.15 on and after January 1, 2007,
     8    $8.50 on and after January 1, 2013
     9    and  on and after January 1, 2014 and on each following January first,

    10  the commissioner shall calculate and establish an adjusted minimum  wage
    11  rate  by  increasing  the  then current minimum wage rate by the rate of
    12  inflation for the most recent twelve month  period  available  prior  to
    13  each  January  first using the consumer price index-all urban consumers,
    14  CPI-U, or a successor index as calculated by the United  States  depart-
    15  ment  of  labor, if such rate of inflation is greater than zero percent,
    16  or, if greater, such other wage as may be  established  by  federal  law
    17  pursuant  to  29 U.S.C. section 206 or its successors or such other wage
    18  as may be established in accordance with the provisions of this article.
    19    4. Notwithstanding subdivisions one and two of this section, the  wage
    20  for  an  employee who is a food service worker receiving tips shall be a

    21  cash wage of at least three dollars and thirty  cents  per  hour  on  or
    22  after  March  thirty-first,  two thousand; three dollars and eighty-five
    23  cents on or after January  first,  two  thousand  five;  at  least  four
    24  dollars  and  thirty-five  cents on or after January first, two thousand
    25  six; [and] at least four dollars and sixty cents  on  or  after  January
    26  first,  two  thousand  seven;  and  at least five dollars and eighty-six
    27  cents on or after January first, two thousand thirteen; and on or  after
    28  January  first,  two  thousand  fourteen  and  on each following January
    29  first, the commissioner shall calculate and establish an adjusted  mini-
    30  mum  wage  rate  by increasing the then current minimum wage rate by the
    31  rate of inflation for the most  recent  twelve  month  period  available

    32  prior  to  each  January  first using the consumer price index-all urban
    33  consumers, CPI-U, or a successor  index  as  calculated  by  the  United
    34  States  department  of  labor, if such rate of inflation is greater than
    35  zero percent, provided that the tips of such an employee, when added  to
    36  such cash wage, are equal to or exceed the minimum wage in effect pursu-
    37  ant  to  subdivision  one  of  this section and provided further that no
    38  other cash wage is established pursuant to section  six  hundred  fifty-
    39  three of this article. In the event the cash wage payable under the Fair
    40  Labor Standards Act (29 United States Code Sec. 203 (m), as amended), is
    41  increased  after  enactment  of  this subdivision, the cash wage payable
    42  under this subdivision shall automatically be increased by  the  propor-

    43  tionate  increase  in  the cash wage payable under such federal law, and
    44  will be immediately enforceable as the cash wage payable to food service
    45  workers under this article.
    46    5. Notwithstanding subdivisions one and two of this section, meal  and
    47  lodging  allowances  for  a  food  service  worker receiving a cash wage
    48  amounting to three dollars and thirty cents per hour on or  after  March
    49  thirty-first,  two  thousand;  three dollars and eighty-five cents on or
    50  after January first, two thousand five;  four  dollars  and  thirty-five
    51  cents  on  or  after January first, two thousand six; [and] four dollars
    52  and sixty cents on or after January  first,  two  thousand  seven;  five
    53  dollars  and  eighty-six cents on or after March thirty-first, two thou-
    54  sand thirteen; and on or after March thirty-first, two thousand fourteen

    55  and on each following March thirty-first, the commissioner shall  calcu-
    56  late  and establish an adjusted minimum wage rate by increasing the then

        A. 9148                             3
 
     1  current minimum wage rate by the rate of inflation for the  most  recent
     2  twelve month period available prior to each March thirty-first using the
     3  consumer price index-all urban consumers, CPI-U, or a successor index as
     4  calculated  by  the  United  States department of labor, if such rate of
     5  inflation is greater than zero percent, shall  not  increase  more  than
     6  two-thirds  of  the increase required by subdivision two of this section
     7  as applied to state wage orders in effect pursuant to subdivision one of
     8  this section.
     9    § 4. This act shall take effect immediately.

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