NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7257B
SPONSOR: Titus (MS) TITLE OF BILL:
An act to amend the labor law, the education law and the general munici-
pal law, in relation to the minimum wage; to amend the public health
law, in relation to home care worker wage parity; and to amend part H of
chapter 59 of the laws of 2011, amending the public health law and other
laws relating to known and projected department of health state fund
medicaid expenditures, in relation to medicaid disbursements
SUMMARY OF PROVISIONS:
Sections 1 and 2 of the bill would amend § 651 of the Labor Law to
require that state and municipal governments and political subdivisions
thereof pay their employees the statutory minimum wage.
Section 3 of the bill would amend § 652 of the Labor Law to raise the
statutory minimum wage to $10.50 in New York City and Nassau, Suffolk,
and Westchester counties and $9.75 in the rest of the State on July 1,
2016; to $12.00 in New York City and Nassau, Suffolk, and Westchester
counties and $10.75 in the rest of the state on December 31, 2016; to
$13.50 in New York City and Nassau, Suffolk, and Westchester counties
and $11.75 in the rest of the state on December 31, 2017; to $15.00 in
New York City and Nassau, Suffolk, and Westchester counties and $12.75
in the rest of the state on December 31, 2018; to $13.75 in in the rest
of the state on December 31, 2019; to $14.50 in the rest of the state by
December 31, 2020; and to $15.00 in the rest of the state by December
31, 2021. On and after December 31, 2018 in New York City and Nassau,
Suffolk and Westchester counties and December 31, 2021 in the rest of
the state the minimum wage would be indexed to the rate of inflation.
Section 2 would also provide that the lower minimum wage set for upstate
New York would apply to the entire state for purposes of eligibility for
unemployment.
Sections 4 and 5 of the bill would exempt any minimum wage increase
attributable to § 652 of the labor law from the calculation of real
property tax caps for schools and municipalities.
Section 6 of the bill would exempt any minimum wage increases attribut-
able to § 652 of the labor law from the global cap on Medicaid.
Section 7 of the bill would provide that the cash portion of the wage
for home health aides in New York City, Nassau, Suffolk, and Westchester
must be increased in response to a minimum wage increase.
Section 8 of the bill would require that any increase attributable to
the increase in the minimum wage be excluded from the calculation of any
policy of the state regarding spending limitations in the enacted budget
relating to the state's financial plans and capital improvement program.
It would also require that programs or services, including those
provided through not-for-profits, funded by New York State through
certain enumerated agencies be adjusted to reflect the increase in labor
costs related to the minimum wage.
Section 9 is a severability provision.
Section 10 is the effective date.
JUSTIFICATION:
When Congress enacted the Fair Labor Standards Act in 1938 and
prescribed a minimum wage, it was intended to ensure that low-wage work-
ers would earn, at the very least, a liveable wage. Over the years, data
has shown that the federal government's actions to preserve this stand-
ard against the erosive power of inflation have fallen decades behind.
If the 1968 minimum wage of $1.50 had been indexed to inflation, it
would have the purchasing power of over $12.00 today.
While the recent increase to the minimum wage to $9.00 is a start, more
can be done to help families meet the rising costs of food and shelter,
health care, transportation, child care and other necessities.
This bill ensures that the state's minimum wage will keep pace with
inflation and also recognizes that the state is diverse, with the cost
of living varying by region. Providing for a higher minimum wage in
areas of the state with a higher cost of living will enable residents in
all regions of the State to make a livable wage that is commensurate
with their needs.
Health care workers and other human services providers cannot be left
behind. To ensure that there are sufficient resources available for the
Medicaid program to support these wage increases without impacting
services, the bill would exempt any costs attributable to the increase
in the minimum wage from the annual global growth cap on the State's
share of Department of Health Medicaid expenditures. Additionally,
there are many vital human services functions performed by not-for-pro-
fit organizations that contract with the State. In order for such non-
profits to continue to provide high-quality services, the Assembly
anticipates that the wage increases under the bill will be funded in the
Enacted Budget. Finally, an exclusion from the real property tax cap and
any State spending limitation of any expenditures attributable to the
increase in the minimum wage would enable school districts, munici-
palities, and the State to effectively address any cost increases and
ensure the provision of necessary educational, community, and human
services.
LEGISLATIVE HISTORY:
New legislation.
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act would take effect immediately.
