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S3257Senate2015-2016 Session

Relates to the minimum wage for food service workers receiving tips

Sponsor James Sanders Jr.SD-10Affects Economy
Status
In Senate Committee
Labor
Impact
Pending
Passage
Pending

Bill progress

Step 2 of 7

In committee · Labor

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Who cares

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Sponsors

Primary sponsor
James Sanders Jr.

Senator · Senate District 10

No co-sponsors yet.

History

  1. Print number 3257a
  2. Amend and recommit to labor
  3. Referred to labor
  4. Referred to labor

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

Title of bill

An act to amend the labor law, in relation to the minimum wage for food service workers receiving tips

Purpose

To increase the New York State minimum wage for food service workers receiving tips to equal seventy percent (70%) of the state's standard minimum wage.

Summary of provisions

§ 1. Subdivision 4 of section 652 of the labor law, as amended by chapter 747 of the laws of 2004 is amended to raise the New York State minimum for food service workers receiving tips to equal seventy percent (70%) of the state's standard minimum wage.

§ 2. This act shall take effect on the ninetieth day after it shall have become a law.

Existing law

Food service workers receiving tips now have a minimum wage of $4.60. provided they make or exceed the state minimum wage when their tips are taken into account.

Justification

Recently the Chairman of the President's Council of Economic Advisers declared that the minimum wage has not kept up with inflation. A minimum wage that does not keep up with inflation forces employees working at or near the minimum wage to live in poverty even though they may work full time.

In New York the minimum wage for food service employees is well below the state minimum wage. While these employees receive tips in addition to their wages, many times those wages plus tips do not meet the state minimum wage. According to Restaurant Opportunities Centers United, a restaurant workers coalition, restaurant workers are the largest group of full time workers living in poverty.

RaisetheMinimumWage.com, a project of the National Employment Law Project states, "Tips are notoriously erratic, varying from shift to shift and from season to season. Tipped workers are hit especially hard during economic downturns, as financially squeezed consumers often have no choice but to leave smaller tips or cut back on spending at diners or salons altogether. A higher tipped minimum wage would help cushion the impact of these fluctuations and ensure a guaranteed basic income for tipped workers." Raising the tipped minimum wage to 70 percent of the full minimum wage will ensure that the bulk of tipped workers' income is paid directly by their employers rather than being made up by tips.

RaisetheMinimumWage.com farther stated, "Providing tipped workers a stable base income paid directly by their employers is a key step for improving the economic security and working conditions of low-paid tipped workers." This bill would provide such stability for food service employees and allow them to work full time and be able to support themselves.

Legislative history

New bill FISCAL IMPLICATIONS :

No cost to state

Local fiscal implications

None

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.