Establishes the "minimum standards for subsidized jobs act"

1 Co-sponsor

• Ruben Diaz

Title of bill

An act to amend the labor law, in relation to establishing the "minimum standards for subsidized jobs act"

Purpose or general idea of bill

This bill would restrict persons, associations, corporations or other entities from being eligible to receive any economic development subsidy unless such entities pay all of their employees a minimum wage that is at least one dollar per hour higher than the state's minimum wage, employ twenty percent of its workers who will participate in the state worker training program, and have not been adjudicated to be in violation of any federal, state or local laws for at least the previous five years.

Summary of specific provisions

This bill amends the labor law by adding a new article 19-c and new sections 695, 696 and 697, establishing the Minimum standards for Subsidized Jobs Act.

Justification

State subsidized jobs provide low wages and poor benefits which increases the need for government services, including public assistance for food, housing, health care and child care. The purpose of this act is to improve the effectiveness of economic development expenditures, take pressure off of state social services programs and improve the public health and welfare by ensuring that major state subsidies are used to support at least minimum living standards for working families.

Existing law

This legislation creates a new article in state labor law. Existing state statute does not address specific criteria that must be followed when economic development subsidies are provided for the purposes detailed in the legislation.

Prior legislative history

2007-2008: A.1724A 06/05/08 - Reported Referred to Ways and Means

Fiscal implications

To be determined.

Effective date

This act shall take effect on the sixtieth day after it shall have become law and shall apply to any economic development subsidy awarded or renewed on or after such effective date.