Increases civil and criminal penalties for failure to pay wages or to differentiate the rate of pay based on sex

BILL NUMBER:S3497A

Title of bill

An act to amend the labor law, in relation to increasing the fines for employers not lawfully paying the wages of his or her employees; and to direct the commissioner of labor to issue a report on wage differential among men and women and between minorities and non-minorities

Purpose

To increase civil and criminal penalties for failures to pay wages or to differentiate the rate of pay based on sex.

Summary of provisions

Section 1- Increases the civil penalties under section 197-a of the labor law from $500.00 to S 1000.00.

Section 2- Increases the criminal penalties under section 198-a of the labor law from $500.00 to not more than $20,000 to $1,000 to not more than $25,000 and subsequent violation occurring within 6 years resulting in felony is now reduce to five years for felony application.

Section 3- Requires the Commissioner of Labor, in consultation with the Empire State Development Corporation, Department of Civil Service, and other state agencies, together with the Business Council and the New York State AFL-CIO, a statewide women's economic empowerment organization and any other group or organization the commissioner may deem appropriate, shall issue a report by May 1, 2015.

Among the issues to be reviewed by the Commissioner shall include, but not limited to:

- research of the trends in this area in the public and private sector including labor organizations within the State of New York;

- identify the major issues relating to wage differential within the public and private sector including cost to the state, local governmental units and private sector businesses for compliance with wage differential compliance;

- providing legislative and policy recommendations regarding wage differential including sanctions and penalties;

- issues concerning the enforcement and adequacy of current state laws related to such issues, including section 194 of the labor law;

- laws and policies in other states that deal with the wage differential and wage discrimination and;

- investigation of the relative weight of discrimination and other factors that may lead to the wage differential.

Section 4- Contains the effective date

Existing law

Currently, civil fine is $500.00 and criminal fine is $500.00

Justification

Two comparable worth studies were undertaken in 1985; one in New York State and one in California. The New York Study was utilized to propose changing civil service grade levels of many titles.

Many of the California findings which consisted of literature review and public testimony were restated in the 2003 Government Accounting Office (GAO).

There exists a need in 2012 for a comprehensive review and examination of this issue.

Nonetheless, increases in the penalties and fines for civil and criminal violations should not have to await the outcome of any study.

Legislative history

2013: S. 3497 Referred to Labor 2012: S. 7351-A Committed to Rules 2008: S. 7521 Passed Senate

Fiscal implications

None

Effective date

This act shall take effect immediately.