S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8297
 
                             I N  S E N A T E
 
                              April 27, 2018
                                ___________
 
 Introduced by Sen. MARCHIONE -- 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 authorizing counties to
   opt out of any wage increase that eliminates the credit for tips
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivisions  2  and  4  of section 652 of the labor law,
 subdivision 2 as amended by chapter 38 of the laws of 1990 and  subdivi-
 sion  4  as  amended by section 2 of part K of chapter 54 of the laws of
 2016, are amended to read as follows:
   2. Existing wage orders. The minimum wage  orders  in  effect  on  the
 effective date of this act shall remain in full force and effect, except
 as modified in accordance with the provisions of this article.
   Such  minimum  wage  orders  shall  be modified by the commissioner to
 increase all monetary amounts specified therein in the  same  proportion
 as  the  increase  in the hourly minimum wage as provided in subdivision
 one of this section, including the amounts  specified  in  such  minimum
 wage  orders  as  allowances  for  gratuities, and when furnished by the
 employer to its employees, for meals, lodging, apparel  and  other  such
 items, services and facilities. All amounts so modified shall be rounded
 off  to the nearest five cents. The modified orders shall be promulgated
 by the commissioner without a public hearing, and without reference to a
 wage board, and shall become effective on the  effective  date  of  such
 increases  in  the  minimum  wage  except  as otherwise provided in this
 subdivision,  notwithstanding  any  other  provision  of  this  article;
 PROVIDED,  HOWEVER,  A  COUNTY MAY OPT OUT OF ANY INCREASE IN THE HOURLY
 CASH WAGE FOR FOOD SERVICE WORKERS AND SERVICE EMPLOYEES THAT ELIMINATES
 THE CREDIT FOR TIPS.
   4. Notwithstanding subdivisions one and two of this section, the  wage
 for  an  employee who is a food service worker receiving tips shall be a
 cash wage of at least two-thirds of the minimum wage rates set forth  in
 subdivision  one  of  this section, rounded to the nearest five cents or
 seven dollars and fifty cents, whichever is higher,  provided  that  the
 tips  of such an employee, when added to such cash wage, are equal to or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15549-01-8

 S. 8297                             2
 
 exceed the minimum wage in effect pursuant to subdivision  one  of  this
 section  and  provided  further  that  no other cash wage is established
 pursuant to  section  six  hundred  fifty-three  of  this  article;  AND
 PROVIDED,  FURTHER,  THAT  A  COUNTY MAY OPT OUT OF ANY INCREASE IN SUCH
 CASH WAGE FOR FOOD SERVICE WORKERS AND SERVICE EMPLOYEES THAT ELIMINATES
 SUCH CREDIT FOR TIPS.
   § 2. Subdivision 2 of section 653 of the labor law, as added by  chap-
 ter 14 of the laws of 2000, is amended to read as follows:
   (2)  The  commissioner shall, within six months after enactment of any
 change in the statutory minimum wage set forth  in  subdivision  one  of
 section  six  hundred fifty-two of this article, appoint a wage board to
 inquire and report and recommend any changes to  wage  orders  governing
 wages  payable  to food service workers. Such wage board shall be estab-
 lished consistent with the provisions of subdivision one of section  six
 hundred  fifty-five  of  this article, except the representatives of the
 employees shall be selected upon the nomination of  the  state  American
 Federation  of Labor/Congress of Industrial Organizations; and provided,
 further, that the representatives of the  employers  shall  be  selected
 upon  the  nomination  of  the New York State Business Council. Any wage
 order authorizing a lesser wage  than  the  previously  and  statutorily
 mandated  minimum  wage for such employees shall be reviewed by the wage
 board to ascertain at what  level  such  wage  order  is  sufficient  to
 provide adequate maintenance and to protect the health and livelihood of
 employees subject to such a wage order after a statutory increase in the
 mandated minimum wage. NOTWITHSTANDING SECTION SIX HUNDRED FIFTY-FIVE OF
 THIS ARTICLE, COUNTIES MAY OPT OUT OF ANY WAGE ORDER UNDER THIS SUBDIVI-
 SION  AUTHORIZING  AN  INCREASE IN THE CASH WAGE FOR SUCH EMPLOYEES THAT
 ELIMINATES THE CREDIT FOR TIPS.
   § 3. This act shall take effect immediately.