What's happening
This bill requires annual reporting on business closures, employment changes, and expansion failures in New York due to minimum wage increases.
Why it matters
Creates new annual reporting requirements. for New York businesses to disclose closures, workforce reductions, and failures to expand that are attributed specifically to minimum wage increases, introducing a mechanism for systematic statewide data collection.
Gives policymakers more specific data. on how minimum wage increases may be impacting business operations and employment, potentially informing future decisions on wage policy and economic development efforts.
Increases administrative responsibilities. for businesses, as they would need to track and report employment changes and business status explicitly citing minimum wage as the cause—potentially adding compliance burdens, especially for small businesses.
May influence public and legislative debate. over minimum wage policies by generating regular, official reports that could be used to support or challenge future wage increases, depending on the findings.
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Track Minimum Wage Impact
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History
- Referred to labor
- Referred to labor
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
645
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sen. BOYLE -- read twice and ordered printed, and when printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to the effects of the minimum wage increase on New York state businesses and workforce
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 6 of section 652 of the labor law, as added by section 3 of part K of chapter 54 of the laws of 2016, is amended to read as follows:
6. Notwithstanding subdivision one of this section, and sections six hundred fifty-three and six hundred fifty-five of this article, on or after January first, two thousand nineteen, and each January first thereafter until such time as the minimum wage is fifteen dollars in all areas of the state, the division of budget shall conduct an analysis of the state of the economy in each region, and the effect of the minimum wage increases listed in this section, to determine whether there should be a temporary suspension or delay in any scheduled increases. In conducting its analysis, the division of budget shall consult the department, the department's division of research and statistics, the United States department of labor, the federal reserve bank of New York and other economic experts. Additionally, the division of budget shall take into consideration the information compiled pursuant to subdivisions sixteen and seventeen of section twenty-one of this chapter. The division of budget will reference well-established economic indexes and accepted economic factors, including those set forth in section six hundred fifty-four of this article, to justify and explain its decision. After reviewing such indexes and factors, the division shall determine whether scheduled increases in the minimum wage shall continue up to and including fifteen dollars. The division of budget will issue a report and recommendation to the commissioner, who shall take action on that
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04376-01-9
S. 645 2
report and recommendation pursuant to section six hundred fifty-six of this article.
§ 2. Section 21 of the labor law is amended by adding three new subdivisions 16, 17 and 18 to read as follows:
16. Shall compile and report, on an annual basis, to the governor, the temporary president of the senate and the speaker of the assembly, the number of corporations and business entities that have filed with the secretary of state that have dissolved or ceased to employ New York workers in entities located within New York state due to the increase in minimum wage.
17. Shall ask corporations and business entities that have filed with the secretary of state, to report the number of employees at the beginning of each year and the end of each year, specifically notating the number of employees no longer employed due to the increase in minimum wage. Additionally, such corporations and business entities shall report any failures to expand due to such increase. Such data shall be compiled and reported, on an annual basis, to the governor, the temporary president of the senate and the speaker of the assembly.
18. Shall establish a mechanism for which corporations and business entities shall provide the information described in subdivisions sixteen and seventeen of this section.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the labor law, in relation to the effects of the minimum wage increase on New York state businesses and workforce
Purpose
To call upon the Commissioner of the Department of Labor to compile and report annually to the Legislature, the number of businesses that have closed, moved out of New York State, reduced their number of employees, and/or halted planned expansions due to an increase in minimum wage. These statistics should further show the number of jobs which were affected for appropriate compilation on a statewide basis.
Summary of provisions
Section 1. This bill amends subdivision 6 of section 652 of the labor law to mandate the Division of Budget to consider the information compiled on the number of businesses that have closed, moved out of New York State, reduced their number of employees, and/or halted planned expansions due to an increase in minimum wage when it conducts analysis of the state of the economy.
Section 2. This bill amends section 21 of the labor law to require the Commissioner of the Department of Labor to compile and report to the Legislature the number of businesses that have closed, moved out of New York State, reduced their number of employees, and/or halted planned expansions due to an increase in minimum wage. This bill also requires the Commissioner of the Department of Labor to establish a mechanism for businesses to report if they have closed, moved out of New York State, reduced their number of employees, and/or halted planned expansions due to an increase in minimum wage.
Section 3. Effective Date.
Justification
In the fiscal year 2016-2017 budget vote, a phased in minimum wage increase was included in the final version of the State budget. Start- ing in 2019 the Division of Budget will conduct an annual study to review the impact of minimum wage increases and review the regional economic climate throughout the State based on well-established economic indexes and accepted economic factors. The Division of Budget will have authority to temporarily suspend any scheduled wage increase based on such study. Although this provision will provide some safety to busi- nesses struggling to stay within New York, it fails to take into account the direct effect of the minimum wage increase on businesses.
This bill directs the Commissioner of the Department of Labor to compile and report to the Legislature the number of businesses that have closed, moved out of New York State, reduced their number of employees, and/or halted planned expansions due to an increase in minimum wage. This bill requires the Commissioner of the Department of Labor to establish a mechanism for businesses to report if they have closed, moved out of New York State, reduced their number of employees, and/or halted planned expansions due to an increase in minimum wage. It also directs the Divi- sion of Budget to take these reports into consideration when conducting their economic analysis and deciding whether to suspend any scheduled wage increase.
Legislative history
05/12/16 REFERRED TO LABOR 01/04/17 REFERRED TO LABOR 01/03/18 REFERRED TO LABOR
Fiscal implications
To be determined.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.