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A00038 Summary:

A00038 Actions:

A00038 Floor Votes:

A00038 Memo:

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.