BILL NUMBER:S3711

TITLE OF BILL:  An act to amend the labor law, in relation to increasing
the minimum wage

PURPOSE OR GENERAL IDEA OF BILL:  This legislation increases the state
minimum wage to $11.15 with annual adjustments for inflation.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends Subdivision 1 of section 632 of the labor law, as
amended to read that every employer shall pay to each of its employees
for each hour worked a wage of not less than: $11.15 on and after Janu-
ary 1, 2014, and on and after January 1, 2015 and on each following
January first, the commissioner shall calculate and establish an
adjusted minimum wage rate by increasing the then current wage rate by
the rate of inflation using the consumer price index-all urban consum-
ers, CPI-U, or a successor index as calculated by the United States
Department of Labor if such rate is greater than zero percent, of if
greater such other wage as may be established by federal law or its
successors or such other wage as may be established in accordance with
the provisions of this article

Section 2: This act shall take effect immediately.

JUSTIFICATION: New York State has the greatest degree of income inequal-
              

ity among the 50 states according to the American Community Survey
(ACS). Based on the Gini index, New York State tops all other states in
inequality with respect to pre-tax income.

New York City is amongst the top 25 worst cities in terms of the level
of inequality. in the ACS pooled data for three years (2009-2011), the
Gini index for the U.S. was 0.470, and for New York State it was 0.500.
There has been no statistically significant change in New York's Gini
ratio. These staggering statistics coupled with the state of our economy
can be catastrophic if not addressed.

This bill would bring New York's minimum wage back to its all time high
purchasing power of July 1970. The $1.85 minimum wage level that year
would be equivalent to $11.15 an hour in today's dollars.

Raising the minimum wage to anything less than $11.15 per hour would
leave our population well below a meaningful living standard.  (Accord-
ing to the Fiscal Policy Institute and National Employment Law Project:
Raising New York's Minimum Wage analysis).

Opponents may argue that raising the minimum wage this high would devas-
tate the small business industry; however, raising the minimum wage
would do the exact opposite. According to the national Federation of
Independent Businesses, poor sales is one of the top pressing problems
facing small businesses, not the cost of labor.

The Fiscal Policy Institute and National Employment Law Project project
an increase in the minimum wage would inject over $2 billion in new
consumer spending and create over 15,000 jobs.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None.

EFFECTIVE DATE:  This act shall take effect immediately.