Increases the minimum wage to $15.00 an hour and includes annual increases for inflation

Title of bill

An act to amend the labor law, in relation to increasing the minimum wage

Purpose or general idea of bill

This legislation increases the state minimum wage to $15.00 with annual adjustments for inflation.

Summary of specific provisions

Section 1: Amends Subdivision 1 of section 652 of the labor law, as amended to read that every employer shall pay to each of its employees for each hour worked a wage of not less than: $15.00 on and after January 1, 2016, and on and after January 1, 2017 and on each following January first, the commissioner shall calculate and establish an adjusted minimum wage rate by increasing the then current wage rate by the rate of inflation using the consumer price index-all urban consumers, CPI-U, or a successor index as calculated by the United States Department of Labor if such rate is greater than zero percent, of if greater such other wage as may be established by federal law or its successors or such other wage as may be established in accordance with the provisions of this article

Section 2: This act shall take effect immediately.

Justification

New York State has the greatest degree of income inequality among the 50 states according to the American Community Survey (ACS). Based on the Gini index, New York State tops all other states in inequality with respect to pre-tax income.

New York City is amongst the top 25 worst cities in terms of the level of inequality. In, the ACS pooled data for three years (2009-2011), the Gini index for the U.S. was 0.470, and for New York State it was 0.500. There has been no statistically significant change in New York's Gini ratio. These staggering statistics coupled with the state of our economy can be catastrophic if not addressed.

This bill would bring New York's minimum wage back to its all time high purchasing power of July 1970. The $1.85 minimum wage level that year would be equivalent to $15.00 an hour in today's dollars. Raising the minimum wage to anything less than $15.00 per hour would leave our population well below a meaningful living standard. (According to the Fiscal Policy Institute and National Employment Law Project: Raising New York's Minimum Wage analysis).

Opponents may argue that raising the minimum wage this high would devastate the small business industry; however, .raising the minimum wage would do the exact opposite. According to the national Federation of Independent Businesses, poor sales is one of the top pressing problems facing small businesses, not the cost of labor.

The Fiscal Policy Institute and National Employment Law Project an increase in the minimum wage would inject over $2 billion in new consumer spending and create over 15,000 jobs.

Legislative history

2013-2014: S.3711 Referred to Labor.

Fiscal implications for state and local governments

None. EFFECTIVE DATE :