What's happening
This bill proposes to raise New York's minimum wage annually based on inflation, capped at 3.5%, using the national CPI-U index.
Why it matters
Ensures minimum wage keeps pace with cost of living. By tying annual adjustments to the national Consumer Price Index for All Urban Consumers (CPI-U), the bill aims to prevent the minimum wage from losing value due to inflation, helping workers maintain their purchasing power year over year.
Limits unpredictability for businesses. The annual increase is capped at 3.5%, providing employers with a clear maximum for yearly wage hikes and reducing uncertainty about future labor costs, which can aid in business planning and budgeting.
Establishes uniform adjustment mechanism statewide. The bill replaces a more discretionary, regionally variable adjustment process with a consistent, formula-driven approach for all regions, reducing the influence of political or administrative decisions and making minimum wage updates more automatic and transparent.
Prioritizes federal standards if higher. If the federal minimum wage or other applicable federal standards exceed the state’s calculated rate, the higher federal rate prevails, ensuring New York workers benefit from any future increases at the national level.
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Who cares
Minimum-wage workers statewide
The bill would tie annual minimum-wage increases to positive inflation, capped at 3.5%, after each region’s scheduled increases.
New York employers
Employers would have to pay the inflation-adjusted minimum wage each December 31 under the applicable regional schedule.
New York State Department of Labor
The labor commissioner would publish the adjusted rates by October 1 using the national, seasonally unadjusted consumer price index for all urban consumers.
Workers and employers outside New York City, Nassau, Suffolk and Westchester
The bill would remove the $15 ceiling on scheduled increases and replace the budget director’s discretionary formula with the capped inflation formula.
Headline styles
Tie Minimum Wage to Inflation
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to rules
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9085
IN SENATE
November 9, 2020
Introduced by Sen. RAMOS -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the labor law, in relation to raising the minimum wage annually by a percentage which is based on inflation
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 652 of the labor law, as amended by section 1 of part K of chapter 54 of the laws of 2016, is amended to read as follows:
1. Statutory. Every employer shall pay to each of its employees for each hour worked a wage of not less than:
$4.25 on and after April 1, 1991,
$5.15 on and after March 31, 2000,
$6.00 on and after January 1, 2005,
$6.75 on and after January 1, 2006,
$7.15 on and after January 1, 2007,
$8.00 on and after December 31, 2013,
$8.75 on and after December 31, 2014,
$9.00 on and after December 31, 2015,
and until December 31, 2016, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.
(a) New York City. (i) Large employers. Every employer of eleven or more employees shall pay to each of its employees for each hour worked in the city of New York a wage of not less than:
$11.00 per hour on and after December 31, 2016,
$13.00 per hour on and after December 31, 2017,
$15.00 per hour on and after December 31, 2018,
and on each following December thirty-first, a wage published by the commissioner on or before October first, based on the then current minimum wage increased by the lesser of three and one-half percent and the rate of inflation, if greater than zero, for the most recent twelve month period ending June of that year based on the consumer price index
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD17496-02-0
S. 9085 2
for all urban consumers on a national and seasonally unadjusted basis (CPI-U), or a successor index as calculated by the United States department of labor, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.
(ii) Small employers. Every employer of ten or less employees shall pay to each of its employees for each hour worked in the city of New York a wage of not less than:
$10.50 per hour on and after December 31, 2016,
$12.00 per hour on and after December 31, 2017,
$13.50 per hour on and after December 31, 2018,
$15.00 per hour on and after December 31, 2019,
and on each following December thirty-first, a wage published by the commissioner on or before October first, based on the then current minimum wage increased by the lesser of three and one-half percent and the rate of inflation, if greater than zero, for the most recent twelve month period ending June of that year based on the consumer price index for all urban consumers on a national and seasonally unadjusted basis (CPI-U), or a successor index as calculated by the United States department of labor, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.
(b) Remainder of downstate. Every employer shall pay to each of its employees for each hour worked in the counties of Nassau, Suffolk and Westchester a wage not less than:
$10.00 per hour on and after December 31, 2016,
$11.00 per hour on and after December 31, 2017,
$12.00 per hour on and after December 31, 2018,
$13.00 per hour on and after December 31, 2019,
$14.00 per hour on and after December 31, 2020,
$15.00 per hour on and after December 31, 2021,
and on each following December thirty-first, a wage published by the commissioner on or before October first, based on the then current minimum wage increased by the lesser of three and one-half percent and the rate of inflation, if greater than zero, for the most recent twelve month period ending June of that year based on the consumer price index for all urban consumers on a national and seasonally unadjusted basis (CPI-U), or a successor index as calculated by the United States department of labor, or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.
(c) Remainder of state. Every employer shall pay to each of its employees for each hour worked outside of the city of New York and the counties of Nassau, Suffolk, and Westchester, a wage of not less than:
$9.70 on and after December 31, 2016,
$10.40 on and after December 31, 2017,
$11.10 on and after December 31, 2018,
$11.80 on and after December 31, 2019,
$12.50 on and after December 31, 2020,
and on each following December thirty-first, a wage published by the commissioner on or before October first, based on the then current minimum wage increased by [a percentage determined by the director of the budget in consultation with the commissioner, with the result rounded to
S. 9085 3
the nearest five cents, totaling no more than fifteen dollars, where the percentage increase shall be based on indices including, but not limited to, (i)] the lesser of three and one-half percent and the rate of inflation, if greater than zero, for the most recent twelve month period ending June of that year based on the consumer price index for all urban consumers on a national and seasonally unadjusted basis (CPI-U), or a successor index as calculated by the United States department of labor, [(ii) the rate of state personal income growth for the prior calendar year, or a successor index, published by the bureau of economic analysis of the United States department of commerce, or (iii) wage growth;] or, if greater, such other wage as may be established by federal law pursuant to 29 U.S.C. section 206 or its successors or such other wage as may be established in accordance with the provisions of this article.
(d) The rates and schedules established in paragraphs (a) and (b) of this subdivision shall not be deemed to be the minimum wage under this subdivision for purposes of the calculations specified in subdivisions one and two of section five hundred twenty-seven of this chapter.
§ 2. 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 raising the minimum wage annually by a percentage which is based on inflation
PURPOSE OR GENERAL IDEA OF BILL::
Ensures that the minimum wage keeps up with rising prices. SUMMARY: OF PROVISIONS:
Section 1: Amends the labor law Section 54 to require the Commissioner of Labor to publish an increase in the minimum wage each October accord- ing to increases in inflation up to 3.5%. When inflation is positive, the new minimum wage takes effect on December 31st. This applies to all areas in the state.
Section 3: This act shall take effect immediately.
Justification
In New York State, roughly one million workers--16.4% of New York State's workforce--earn the minimum wage. Beginning in 2014, the nation- wide Fight for Fifteen movement publicized the inadequacy of the minimum wage and in part led state lawmakers to gradually increase the minimum wage in New York. New York City reached a $15 minimum wage in 2019, and the rest of downstate is currently scheduled to attain a $15 minimum wage in 2021. The upstate minimum wage is scheduled to increase to $12.50 in 2020 and then increase each year according to inflation and other indicators as determined by the commissioner until it reaches $15.
Historically, yearly gains in inflation have decreased the value of the minimum wage, chipping away at workers' purchasing power and leading to hardship for many. Increases in minimum wage historically have not occurred each year in New York State. Each year that inflation increases and wages at the bottom do not, workers in the lowest-paying positions struggle to pay bills, feed their families, and access transportation. Across the state, minimum wage workers are disproportionately women and people of color, groups which also face significant barriers to advance- ment.
By joining other states that have tied minimum wage to inflation, mini- mum wage workers in New York State will maintain their purchasing power without additional legislative action.
LEGISLATIVE HISTORY::
New Bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::
To be determined.
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.