Relates to the increase in the minimum wage and provides that on each December 31st the rate shall be indexed to inflation; repealer

Section 3 of the bill would amend § 652 of the Labor Law to raise the statutory minimum wage from $8.00 to $9.00 per hour on December 31, 2015, to $10.10 per hour on December 31, 2016, and index the rate to inflation on December 31, 2017, and each year thereafter. Section 3 would also increase the cash wage for food service workers from $5 to $5.50 immediately, to $6.20 on December 31, 2015, to $6.95 on December 31, 2016, and index the rate to inflation on December 31, 2017, and each year thereafter.

Section 4 of the bill would repeal subdivision 6 of § 652 of the Labor Law, which was enacted in the SFY 2013-14 budget, that provided that the cash wage for food service workers would be modified through a wage order.

Section 5 of the bill would amend § 653 of the Labor Law to clarify that service employees paid in accordance with the hospitality wage order are included in the wage board process that takes place upon a change to the statutory minimum wage.

Section 6 of the bill would amend § 11 of the Municipal Home Rule Law to allow counties and cities to adopt certain local wage laws that supersede labor laws.

Section 7 of the bill would amend § 654 of the Labor Law to authorize counties and cities to raise their local minimum wage up to thirty percent higher than the state's minimum wage.

Section 8 of the bill would amend § 662 of the Labor Law to provide that employers would be liable for penalties associated with failure to pay the local minimum wage.

Section 9 of the bill provides for an immediate effective date.

Effects of present law which this bill would alter

Present law provides that the minimum wage shall be increased to $8.75 on December 31, 2014 and $9.00 on December 31, 2015. This bill accelerates the increase to require a minimum wage of $9.00 on December 31, 2015, provides for another minimum wage increase to $10.10 on December 31, 2016, and indexes the wage to inflation. Current law does not provide for statutory increases to the cash wage paid to food service workers and service employees under the hospitality wage order. Current law does not authorize localities to establish higher minimum wages.

Justification

When Congress enacted the Fair Labor Standards Act (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. If the 1968 minimum wage of $1.50 had been indexed to inflation, it would have the purchasing power of over $10.00 today. While the recent increase to the minimum wage to $8.00 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. Permitting localities to increase the minimum wage will enable localities to establish adequate wages for working families.

Prior legislative history

New Bill.

Fiscal implications for state and local governments

None known.

Effective date

Immediately.