Enacts the Fair Local Wage Act allowing localities to raise minimum wage by thirty percent

BILL NUMBER:S5214

Title of bill

An act to amend the municipal home rule law and the labor law, in relation to enacting the Fair Local Wage Act allowing localities to raise minimum wages by thirty percent

Purpose

To enable counties or cities to enact a minimum wage that is up to thirty percent higher than the state minimum wage.

Summary of provisions

* Section 1 of the bill sets forth the short title of the act as the "Fair Local Wage Act "

* Section 2 of the bill amends paragraph f of subdivision 1 of section 11 of the municipal home rule law to enable counties or cities to enact local laws as provided in section 3 of the bill.

* Section 3 of the bill amends section 654 of the labor law to include existing provisions of the section as a new subdivision 1 and to add a new subdivision 2 that authorizes counties or cities to enact higher minimum wages up to 30 percent higher than the state minimum wages.

* Section 4 of the bill amends subdivision 1 of section 662 of the labor law to include paying a wage less than the minimum wage enacted by a county or city as a criminal violation in the same manner as paying less than the state minimum wage.

* Section 5 of the bill provides that nothing in this act shall have any effect on the authority of counties or cities to adopt standards relating to wages, hours, other working conditions, or mechanisms for enforcement, that are not inconsistent with the provision of this act.

* Section 6 of the bill sets forth the effective date.

Justification

The Fair Local Wage Act would allow counties or cities across New York State to raise the minimum wage in their area up to 30 percent above the state-mandated minimum wage. With the current State minimum of $8.00 per hour, these localities would be able to set a local minimum of up to $10.40 per hour. When the increase already enacted by the State Legislature and Governor brings the State minimum to $8.75 per hour on December 31, 2014, counties or cities would be able to set a wage of up to $11.37 per hour. When the following stage of this increase brings the State minimum to $9.00 per hour on December 31, 2015, counties or cities would be able to set a wage of up to $11.70 per hour. If proposals to raise the statewide minimum to $10.10 were to be enacted, this bill would permit counties or cities to raise the local wage to $13.13 per hour.

The Fair Local Wage Act is intended to give counties and cities a critical tool to improve living standards for low-wage workers, strengthen local economies, improve tax revenues, and relieve local costs for social services-all while recognizing the wide variation in the cost of living in different parts of the State.

The Act would also provide for the State to continue to play a central role is setting wages across New York, by capping local minimum wages

at 30 percent above the State level and by ensuring that county-or-city enacted minimum wages are enforceable by the State in the same manner as the State minimum wage.

Legislative history

2014 Session - new bill - referred to local governments FISCAL IMPACT ON THE STATE: Expected net savings.

EFFECTIVE DATE:This act shall take effect. immediately.