Enacts the fair wage act, raising the minimum wage and allowing localities to raise minimum wages by up to an additional thirty percent

Section 2 - Amends the municipal home rule law to provide for the exception pursuant to the new provisions of labor law relating to local control over minimum wage rates.

Section 3 - Amends section 652 of the labor law to increase the minimum wage to $10.10 per hour on and after July 1, 2017. On and after July 1, 2018, and every year thereafter, the minimum wage will be increased by the rate of inflation as measured by the Consumer Price Index-All Urban Consumers (CPI-U) or a successor index used by the U.S. Department of Labor.

Section 4 - Amends section 654 of the labor law to allow a county, city, town, village, or public benefit corporation establish and enforce a higher minimum wage standard than the statewide minimum wage within their own borders, provided that no local minimum wage greater than 30% more than the statewide minimum would could be enacted.

Section 5 - Amends section 662 of the labor law to provide that an employer who fails to adhere to a local minimum wage shall be guilty of violating the labor law in the same manner as a violation of the statewide minimum wage.

Section 6 - Provides that the effective date shall be immediately.

Existing law

The current New York state minimum wage is $9 per hour.

Justification

While New York adopted a minimum wage increase in 2013 from $7.25 to $8.00 per hour in 2014 and up to $9.00 per hour at the end of 2015, this increase will not provide for an actual living wage throughout the state. In the intervening year, other high-cost states such as California, Connecticut, Vermont, Maryland and Hawaii have raised their minimum wages to $10.00 or more, and others like Massachusetts and Illinois are expected to follow shortly. Many economic advisors and officials at the state and federal level, including President Obama, have urged increasing the minimum wage to $10.10 per hour to bring wages more in line with the past rates of inflation and increase the standards of living for those who are paid the minimum wage.

Similarly, the current minimum wage does not allow for regional variations that take into account the varied costs of living in the state. One size does not fit all in a state that has an estimated 43% cost of living difference between the most expensive and least expensive parts of the state. Other states such as California, Maryland, Washington State, New Mexico and Illinois have found that allowing high cost regions to supplement the state minimum wage with higher local rates allows communities to address local economic needs and living costs.

This bill will address both of these issues by raising the minimum wage to in two steps to $10.10 per hour by July 1, 2017 and indexing future yearly increases to inflation. Local governments will also be given the power to raise the minimum wage within their own boundaries to no more than 30% above the statewide minimum wage. Taken together, this bill will increase the purchasing power of workers, aid small businesses, and allow regional variations that will support the unique character of the state.

Legislative history

New bill

Fiscal implications

To be determined

Local fiscal implications

To be determined

Effective date

This act shall take effect immediately.