NY State Senate Bill 2023-S5567A

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to finance
May 11, 2023	print number 5567a
May 11, 2023	amend (t) and recommit to finance
Mar 08, 2023	referred to finance

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A (Active)

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2023-S5567 - Details

See Assembly Version of this Bill:: A1710
Current Committee:: Senate Finance
Law Section:: Labor Law
Laws Affected:: Amd §§196-d, 651, 652 & 653, Lab L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8406
2021-2022: S808, A10203

2023-S5567 - Summary

Provides for minimum wage requirements for miscellaneous industry workers.

2023-S5567 - Sponsor Memo

                                 
BILL NUMBER: S5567

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the labor law, in relation to providing for minimum wage
requirements for miscellaneous industry workers and establishing the
restaurant and restaurant worker recovery loan program; to amend the
state finance law, in relation to establishing the restaurant and
restaurant worker recovery fund; making an appropriation therefor; and
to provide for the repeal of such provisions upon expiration thereof

 
PURPOSE:

Provides for minimum wage requirements for miscellaneous industry work-
ers; appropriation

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 196-d of Labor Law to allow tip sharing by
waiters with all employees, not just busboys.

Section 2 amends Section 651 of the Labor Law by adding new subdivision
10 to define "miscellaneous industry workers."

Section 3 amends subdivisions 2 and 4 of Section 652 the Labor Law to
set a schedule on which cash wages for food service workers, service
employees, and miscellaneous industry workers will increase until that
wage is equivalent to the minimum wage. the cash wage for food service
employees receiving

In the City of New York, tips will be as follows:

$9.00 per hour on or after December 31, 2023;

$10.50 per hour on or after December 31, 2024;

$12.50 per hour on or after December 31,2025;

$13.50 per hour on or after December 31, 2026;

$15.00 per hour on or after December 31, 2027;

Beginning on December 31, 2027, the cash wage cannot be less than the
minimum wage.

In Nassau, Suffolk, and Westchester Counties the cash wage for food
service employees receiving tips will be as follows:

$8.00 per hour on or after December 31, 2023;

$9.50 per hour on or after December 31, 2024;

$11.00 per hour on or after December 31, 2025;

$13.00 per hour on or after December 31, 2026;

$15.00 per hour on or after December 31, 2027;

Beginning on December 31, 2027, the cash wage cannot be less than the
minimum wage.

In all other counties, the cash wage for food service employees receiv-
ing tips will be as follows:

$8.00 per hour on or after December 31, 2023;

$9.25 per hour on or after December 31, 2024;

$10.50 per hour on or after December 31, 2025;

$11.50 per hour on or after December 31, 2026;

$12.50 per hour on or after December 31, 2027;

Beginning on December 31, 2028, the cash wage cannot be less than the
minimum wage.

For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in the City of New York must not be less than:

$13.15 or $13.85 per hour for high tip and low tip employees, respec-
tively on or after June 30, 2023;

$15.00 per hour for both high tip and low tip employees, on or after
December 31, 2023.

Beginning on December 31, 2024, the cash wage cannot be less than the
minimum wage.

For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in the Nassau, Suffolk, and Westchester counties must
not be less than:

$11.40 or $12.00 per hour for high tip and low tip employees, respec-
tively on or after June 30, 2023;

$14.00 per hour for both high tip and low tip employees, on or after
December 31, 2023.

Beginning on December 31, 2024, the cash wage cannot be less than the
minimum wage.

For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in all other counties must not be less than:

$10.35 or $10.90 per hour for high tip and low tip employees, respec-
tively on or after June 30, 2023;

$12.50 per hour for both high tip and low tip employees, on or after
December 31, 2023.

Beginning on December 31, 2024, the cash wage cannot be less than the
minimum wage.



Section 4 amends subdivision 2 of Section 653 of the Labor Law, to
ensure that the wage order under this subdivision does not authorize a
wage lower than the previously and statutorily authorized minimum wage.

Section 5 amends the Labor Law by adding a new Section 198-f to estab-
lish a restaurant and restaurant worker recovery fund and defining what
equity training, restaurant and restaurant worker recovery fund, quali-
fying restaurant, and small New York-based restaurant are.

Section 6 amends the State Finance Law to add a new Section 97-ii to
establish a restaurant and restaurant worker recovery fund.

Section 7 establishes the appropriation to be in the sum of $50 million.
Section 8 sets forth a severability clause. Section 9 sets forth the
effective date.

 
JUSTIFICATION:

For many years, employers of food service employees have been provided
with a credit that reduces the hourly minimum wage paid to employees
receiving gratuities. These employers now pay $7.50 per hour to workers,
so long as workers receive on average the difference between their
reduced minimum wage and the statutory minimum wage in tips, which has
led to a subminimum wage. Allowing for the tip credit has created many
inequities in food service work.

Employees who are not made whole by gratuities face arduous legal proc-
esses to recover their owed wages, involving complicated record- keeping
and inadequate legal remedies. Reliance on tips has also created an
environment where workers are victimized, and in some cases, encouraged
to turn a blind eye, to rampant discrimination and sexual harassment by
clientele and managers. This results in annual restaurant employee sexu-
al harassment claims to the EEOC at five times the rate of other indus-
tries. Eight states (Alaska, California, Maine, Minnesota, Montana,
Nevada, Oregon, and Washington) have eliminated the tipped credit and
required employers to pay the full minimum wage to employees. Those
states have seen growth in the restaurant industry and a more equitable
and experienced workforce.  Washington, DC and Portland, Maine have also
passed this via ballot initiative.

New York's two-tiered wage system presents challenges for employers as
well as workers.  Unlike many' other laws, wage and hour laws put the
onus on employers to keep accurate records and follow the law, which
take up large amounts of time and money in monitoring compliance. Main-
taining the necessary records and compliance of a two-tiered wage system
exposes employers to additional liability.

In short, it is time for New York to join other states and improve the
working conditions in the restaurant industry by eliminating the sub-mi-
nimum wage. Employers would not be prohibited from allowing for restau-
rant gratuities, but gratuities would no longer make up the difference
between wages received from the restaurant and the actual minimum wage.

Providing equity and fairness to restaurant workers would help reduce
the wage gap and bring New York in line with many of its sister states
in workers' rights and fairness on the job. This bill puts tipped work-
ers in food service on a path to receive the full minimum wage by 2028.

Additionally, the bill codifies wage increases ordered by former Gover-
nor Cuomo for miscellaneous workers, such as nail salon workers, hair-
dressers, carwash workers, etc. The bill will eliminate the subminimum
wage for those industries by December 31, 2025.

The bill also updates New York law considering recent changes in federal
Department of Labor regulations on tip sharing. These changes now allow
tip sharing between all employees, including those who work in "back of
house" roles, such as cooks and dishwashers, and those who do not
receive tips. However, this practice is currently barred under New York
State law. This bill will allow tip sharing among all employees to
ensure greater equity in wage earning between front and back of house
employees.

Finally, the bill establishes a restaurant and restaurant worker recov-
ery relief fund and loan program to assist restaurants in getting work-
ers to one fair wage. The legislation would provide loan forgiveness for
restaurants who pay or seek to transition to paying workers One Fair
Wage a full minimum wage with tips on top - in order to recruit staff
during the Great Resignation.

 
LEGISLATIVE HISTORY:

2021-2022: S.808-A - Amend and Recommit to Labor/A.10203 - Referred to
Labor

 
STATE AND LOCAL FISCAL IMPLICATIONS:

$50 million.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed July 1, 2025.

2023-S5567 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5567
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2023
                                ___________
 
 Introduced  by Sens. JACKSON, BRISPORT, CLEARE, GIANARIS, HOYLMAN-SIGAL,
   LIU, PERSAUD, RAMOS, RIVERA, SALAZAR -- read twice and ordered  print-
   ed, and when printed to be committed to the Committee on Finance
 
 AN ACT to amend the labor law, in relation to providing for minimum wage
   requirements  for  miscellaneous industry workers and establishing the
   restaurant and restaurant worker recovery loan program; to  amend  the
   state  finance  law,  in  relation  to establishing the restaurant and
   restaurant worker recovery fund; making an appropriation therefor; and
   to provide for the repeal of such provisions upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 196-d of the labor law, as added by chapter 1007 of
 the laws of 1968, is amended to read as follows:
   §  196-d. Gratuities. No employer or his OR HER agent or an officer or
 agent of any corporation, or any other person shall  demand  or  accept,
 directly  or  indirectly,  any  part  of  the gratuities, received by an
 employee, or retain any part of a gratuity or of any charge purported to
 be a gratuity for an employee. This provision shall  not  apply  to  the
 checking  of  hats,  coats or other apparel. Nothing in this subdivision
 shall be construed as affecting the allowances from the minimum wage for
 gratuities in the amount determined in accordance with the provisions of
 article  nineteen  of  this  chapter  nor  as  affecting  practices   in
 connection  with  banquets  and  other  special  functions where a fixed
 percentage of the patron's  bill  is  added  for  gratuities  which  are
 distributed to employees, nor to the sharing of tips by a waiter [with a
 busboy or similar employee] WITH OTHER EMPLOYEES.
   §  2. Section 651 of the labor law is amended by adding a new subdivi-
 sion 10 to read as follows:
   10. "MISCELLANEOUS INDUSTRY WORKER" MEANS ANY EMPLOYEE COVERED BY  THE
 MINIMUM WAGE ORDER FOR MISCELLANEOUS INDUSTRIES AND OCCUPATIONS PURSUANT
 TO  THE  PROVISIONS OF 12 NYCRR PART 142, INCLUDING, BUT NOT LIMITED TO,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06920-01-3

 S. 5567                             2
 
 CAR WASH ATTENDANTS, NAIL SALON WORKERS, TOW TRUCK DRIVERS,  DOG  GROOM-
 ERS,  WEDDING PLANNERS, TOUR GUIDES, VALET PARKING ATTENDANTS, HAIRDRES-
 SERS, AESTHETICIANS, GOLF AND TENNIS INSTRUCTORS, AND DOOR-PERSONS.
   § 3. Subdivisions 2 and 4 of section 652 of the labor law, subdivision
 2 as amended by chapter 38 of the laws of 1990, the opening paragraph of
 subdivision  2  as  amended by section 6 of part II of chapter 58 of the
 laws of 2020, subdivision 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; provided,
 however,  that  the minimum wage order for farm workers codified at part
 one hundred ninety of title twelve of the New York  code  of  rules  and
 regulations  in  effect  on  January first, two thousand twenty shall be
 deemed to be a wage order established and adopted under this article and
 shall remain in full force and effect except as modified  in  accordance
 with  the provisions of this article or article nineteen-A of this chap-
 ter.
   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, EXCEPT THAT THE  HOURLY  CASH  WAGE  FOR
 FOOD SERVICE WORKERS, SERVICE EMPLOYEES AND MISCELLANEOUS INDUSTRY WORK-
 ERS WHO RECEIVE TIPS SHALL NOT BE LESS THAN THE CASH WAGE AS PROVIDED IN
 SUBDIVISION  FOUR  OF  THIS  SECTION, AND THE MAXIMUM CREDIT FOR TIPS IN
 MINIMUM WAGE ORDERS SHALL BE MODIFIED SO THAT SUCH CREDIT, WHEN COMBINED
 WITH SUCH CASH WAGE, IS EQUAL TO THE MINIMUM WAGE, AND THE  HOURLY  CASH
 WAGE  FOR MISCELLANEOUS INDUSTRY WORKERS SHALL NOT BE LESS THAN THE CASH
 WAGE AS PROVIDED IN SUBDIVISION FOUR OF THIS  SECTION.  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  hear-
 ing,  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.
   4. (A) 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]  AVERAGE DAILY WAGE of such an employee, when TIPS FOR
 THE DAY ARE added to [such] THE cash wage PAID FOR HOURS WORKED ON  EACH
 SUCH  DAY, are equal to or 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. ANY CASH WAGE  ESTABLISHED  PURSUANT  TO  SECTION  SIX  HUNDRED
 FIFTY-THREE  OF THIS ARTICLE SHALL NOT BE LESS THAN THE CASH WAGE ESTAB-
 LISHED BY THIS SUBDIVISION.
   (B) NOTWITHSTANDING SUBDIVISIONS ONE  AND  TWO  OF  THIS  SECTION  AND
 SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE, THE WAGE FOR AN EMPLOY-
 EE WHO IS A FOOD SERVICE WORKER SERVICE EMPLOYEE RECEIVING TIPS AND PAID
 PURSUANT  TO THE PROVISIONS OF 12 NYCRR PART 146 SHALL BE, FOR EACH HOUR
 WORKED IN THE CITY OF NEW YORK, A CASH WAGE OF NOT LESS THAN:
 S. 5567                             3
 
   $9.00 PER HOUR ON AND AFTER DECEMBER 31, 2023;
   $10.50 PER HOUR ON AND AFTER DECEMBER 31, 2024;
   $12.00 PER HOUR ON AND AFTER DECEMBER 31, 2025;
   $13.50 PER HOUR ON AND AFTER DECEMBER 31, 2026;
   $15.00  PER  HOUR  ON  AND  AFTER  DECEMBER 31, 2027, AND BEGINNING ON
 DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-EIGHT, AND ON EACH  FOLLOWING
 DECEMBER  THIRTY-FIRST THEREAFTER, A CASH WAGE PAYABLE TO A FOOD SERVICE
 WORKER OR SERVICE WORKER SHALL BE PUBLISHED BY THE  COMMISSIONER  ON  OR
 BEFORE OCTOBER FIRST OF SUCH YEAR THAT IS EQUAL TO THE THEN CURRENT CASH
 WAGE  UNDER  THIS  PARAGRAPH INCREASED BY $1.75, UNTIL SUCH TIME AS SUCH
 CASH WAGE WOULD BE EQUAL TO OR GREATER THAN THE CASH  WAGE  UNDER  PARA-
 GRAPH  (A)  OF  SUBDIVISION ONE OF THIS SECTION, AT WHICH POINT THE CASH
 WAGE UNDER THIS PARAGRAPH SHALL BE THE SAME AS THE CASH WAGE UNDER PARA-
 GRAPH (A) OF SUBDIVISION ONE OF THIS SECTION AND SHALL INCREASE WHENEVER
 THE LATTER INCREASES.
   (C) NOTWITHSTANDING SUBDIVISIONS ONE  AND  TWO  OF  THIS  SECTION  AND
 SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE, THE WAGE FOR AN EMPLOY-
 EE  WHO  IS A FOOD SERVICE WORKER OR SERVICE EMPLOYEE RECEIVING TIPS AND
 PAID PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 146 SHALL BE, FOR  EACH
 HOUR  WORKED  IN THE COUNTIES OF NASSAU, SUFFOLK AND WESTCHESTER, A CASH
 WAGE OF NOT LESS THAN:
   $8.00 PER HOUR ON AND AFTER DECEMBER 31, 2023;
   $9.50 PER HOUR ON AND AFTER DECEMBER 31, 2024;
   $11.00 PER HOUR ON AND AFTER DECEMBER 31, 2025;
   $13.00 PER HOUR ON AND AFTER DECEMBER 31, 2026;
   $15.00 PER HOUR ON AND AFTER  DECEMBER  31,  2027,  AND  BEGINNING  ON
 DECEMBER  THIRTY-FIRST, TWO THOUSAND TWENTY-EIGHT, AND ON EACH FOLLOWING
 DECEMBER THIRTY-FIRST THEREAFTER, A CASH WAGE PAYABLE TO A FOOD  SERVICE
 WORKER  OR  SERVICE  WORKER SHALL BE PUBLISHED BY THE COMMISSIONER ON OR
 BEFORE OCTOBER FIRST OF SUCH YEAR, THAT IS EQUAL  TO  THE  THEN  CURRENT
 CASH  WAGE  UNDER  THIS PARAGRAPH INCREASED BY $1.75, UNTIL SUCH TIME AS
 SUCH CASH WAGE WOULD BE EQUAL TO OR GREATER THAN  THE  CASH  WAGE  UNDER
 PARAGRAPH  (B)  OF  SUBDIVISION  ONE OF THIS SECTION, AT WHICH POINT THE
 CASH WAGE PAYABLE UNDER THIS PARAGRAPH SHALL BE THE  SAME  AS  THE  CASH
 WAGE  UNDER  PARAGRAPH  (B) OF SUBDIVISION ONE OF THIS SECTION AND SHALL
 INCREASE WHENEVER THE LATTER INCREASES.
   (D) NOTWITHSTANDING SUBDIVISIONS ONE  AND  TWO  OF  THIS  SECTION  AND
 SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE, THE WAGE FOR AN EMPLOY-
 EE  WHO  IS A FOOD SERVICE WORKER OR SERVICE EMPLOYEE RECEIVING TIPS AND
 PAID PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 146 SHALL BE, FOR  EACH
 HOUR  WORKED  OUTSIDE  THE  CITY OF NEW YORK AND THE COUNTIES OF NASSAU,
 SUFFOLK AND WESTCHESTER, A CASH WAGE OF NOT LESS THAN:
   $8.00 PER HOUR ON AND AFTER DECEMBER 31, 2023;
   $9.25 PER HOUR ON AND AFTER DECEMBER 31, 2024;
   $10.50 PER HOUR ON AND AFTER DECEMBER 31, 2025;
   $11.50 PER HOUR ON AND AFTER DECEMBER 31, 2026;
   $12.50 PER HOUR ON AND AFTER  DECEMBER  31,  2027,  AND  BEGINNING  ON
 DECEMBER  THIRTY-FIRST, TWO THOUSAND TWENTY-EIGHT, AND ON EACH FOLLOWING
 DECEMBER THIRTY-FIRST THEREAFTER, A CASH WAGE PAYABLE TO A FOOD  SERVICE
 WORKER  OR  SERVICE  WORKER SHALL BE PUBLISHED BY THE COMMISSIONER ON OR
 BEFORE OCTOBER FIRST OF SUCH YEAR THAT IS EQUAL TO THE THEN CURRENT CASH
 WAGE UNDER THIS PARAGRAPH INCREASED BY $1.75, UNTIL SUCH  TIME  AS  SUCH
 CASH  WAGE  WOULD  BE EQUAL TO OR GREATER THAN THE CASH WAGE UNDER PARA-
 GRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, AT WHICH  POINT  THE  CASH
 WAGE  UNDER THIS PARAGRAPH SHALL BE THE SAME AS THE WAGE UNDER PARAGRAPH
 S. 5567                             4
 
 (C) OF SUBDIVISION ONE OF THIS SECTION AND SHALL INCREASE  WHENEVER  THE
 LATTER INCREASES.
   (E) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR  AN  EMPLOYEE  WHO IS A MISCELLANEOUS INDUSTRY WORKER RECEIVING TIPS
 AND PAID PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 142  SHALL  BE  FOR
 EACH HOUR WORKED IN THE CITY OF NEW YORK, A CASH WAGE OF NOT LESS THAN:
   $13.15  OR $13.85 PER HOUR FOR HIGH TIP AND LOW TIP EMPLOYEES, RESPEC-
 TIVELY ON AND AFTER JUNE 30, 2023;
   $15.00 PER HOUR FOR BOTH HIGH TIP AND LOW TIP EMPLOYEES ON  AND  AFTER
 DECEMBER  31, 2023, AND BEGINNING ON DECEMBER THIRTY-FIRST, TWO THOUSAND
 TWENTY-FOUR, THE CASH WAGE PAYABLE UNDER THIS  PARAGRAPH  SHALL  BE  THE
 SAME  AS  THE  CASH  WAGE UNDER PARAGRAPH (A) OF SUBDIVISION ONE OF THIS
 SECTION AND SHALL INCREASE WHENEVER THE LATTER INCREASES.
   (F) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR AN EMPLOYEE WHO IS A MISCELLANEOUS INDUSTRY  WORKER  RECEIVING  TIPS
 AND  PAID  PURSUANT  TO  THE PROVISIONS OF 12 NYCRR PART 142 BE FOR EACH
 WORKED IN THE COUNTIES OF NASSAU, SUFFOLK AND WESTCHESTER, A  CASH  WAGE
 OF NOT LESS THAN:
   $11.40  OR $12.00 PER HOUR FOR HIGH TIP AND LOW TIP EMPLOYEES, RESPEC-
 TIVELY ON AND AFTER JUNE 30, 2023;
   $14.00 PER HOUR FOR BOTH HIGH TIP AND LOW TIP EMPLOYEES ON  AND  AFTER
 DECEMBER  31, 2023, AND BEGINNING ON DECEMBER THIRTY-FIRST, TWO THOUSAND
 TWENTY-FOUR, THE CASH WAGE PAYABLE UNDER THIS  PARAGRAPH  SHALL  BE  THE
 SAME  AS  THE  CASH  WAGE UNDER PARAGRAPH (B) OF SUBDIVISION ONE OF THIS
 SECTION AND SHALL INCREASE WHENEVER THE LATTER INCREASES.
   (G) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR AN EMPLOYEE WHO IS A MISCELLANEOUS INDUSTRY  WORKER  RECEIVING  TIPS
 AND  PAID  PURSUANT  TO  THE PROVISIONS OF 12 NYCRR PART 142 BE FOR EACH
 HOUR WORKED OUTSIDE THE CITY OF NEW YORK AND  THE  COUNTIES  OF  NASSAU,
 SUFFOLK AND WESTCHESTER, A CASH WAGE OF NOT LESS THAN:
   $10.35  OR $10.90 PER HOUR FOR HIGH TIP AND LOW TIP EMPLOYEES, RESPEC-
 TIVELY ON AND AFTER JUNE 30, 2023;
   $12.50 PER HOUR FOR BOTH HIGH TIP AND LOW TIP EMPLOYEES ON  AND  AFTER
 DECEMBER  31, 2023, AND BEGINNING ON DECEMBER THIRTY-FIRST, TWO THOUSAND
 TWENTY-FOUR, THE CASH WAGE PAYABLE UNDER THIS  PARAGRAPH  SHALL  BE  THE
 SAME  AS  THE  CASH  WAGE UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF THIS
 SECTION AND SHALL INCREASE WHENEVER THE LATTER INCREASES.
   § 4. 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
 S. 5567                             5
 
 THIS  ARTICLE, A WAGE ORDER UNDER THIS SUBDIVISION SHALL NOT AUTHORIZE A
 LESSER WAGE THAN THE PREVIOUSLY AND STATUTORILY  MANDATED  MINIMUM  WAGE
 FOR SUCH EMPLOYEES.
   § 5. The labor law is amended by adding a new section 198-f to read as
 follows:
   §  198-F. RESTAURANT AND RESTAURANT WORKER RECOVERY FUND LOAN PROGRAM.
 1. THERE IS ESTABLISHED IN THE DEPARTMENT A  RESTAURANT  AND  RESTAURANT
 WORKER RECOVERY FUND LOAN PROGRAM FOR THE PURPOSES OF SUPPORTING RESTAU-
 RANTS  IN THE STATE AND HELPING THEIR EMPLOYEES TO SURVIVE THE FINANCIAL
 HARDSHIPS CREATED BY THE COVID-19 PANDEMIC BY PROVIDING LOANS TO  QUALI-
 FYING  RESTAURANTS  TO  ASSIST  IN  COVERING  UNANTICIPATED  LABOR COSTS
 INCURRED AS A RESULT OF THE STATE OF  EMERGENCY  THAT  WAS  DECLARED  BY
 EXECUTIVE  ORDER  NUMBER TWO HUNDRED TWO OF TWO THOUSAND TWENTY, AND ANY
 FURTHER AMENDMENTS OR MODIFICATIONS THERETO, AND TO ENCOURAGE  PROVIDING
 A LIVABLE WAGE FOR RESTAURANT WORKERS WHO RECEIVE GRATUITIES.
   2. AS USED IN THIS SECTION:
   (A)  "EQUITY TRAINING" MEANS TRAINING AS DESCRIBED IN SUBDIVISION FIVE
 OF THIS SECTION.
   (B) "RESTAURANT AND RESTAURANT WORKER RECOVERY FUND" OR  "FUND"  MEANS
 THE  RESTAURANT AND RESTAURANT WORKER RECOVERY FUND ESTABLISHED PURSUANT
 TO SECTION NINETY-SEVEN-II OF THE STATE FINANCE LAW.
   (C) "QUALIFYING RESTAURANT" MEANS A RESTAURANT THAT MEETS THE CRITERIA
 ESTABLISHED IN SUBDIVISION THREE OF THIS SECTION.
   (D) "SMALL NEW YORK-BASED RESTAURANT" MEANS A RESTAURANT LOCATED WITH-
 IN THE STATE THAT IS A SMALL BUSINESS AS DEFINED BY SECTION ONE  HUNDRED
 THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
   3.  (A) THE DEPARTMENT MAY MAKE LOANS TO QUALIFYING RESTAURANTS IN THE
 AMOUNT OF UP TO FIFTEEN THOUSAND DOLLARS BASED ON A FORMULA AND  PROCESS
 DETERMINED BY THE COMMISSIONER.
   (B)  TO  BE  ELIGIBLE FOR A LOAN FROM THE FUND, A SMALL NEW YORK-BASED
 RESTAURANT SHALL PAY ALL TIPPED EMPLOYEES NOT LESS THAN THE FULL MINIMUM
 HOURLY WAGE RATE AS DEFINED BY SECTION SIX  HUNDRED  FIFTY-TWO  OF  THIS
 CHAPTER AS EVIDENCED BY:
   (I)  PROOF THAT SUCH A POLICY AND PRACTICE IS IN EXISTENCE AT THE TIME
 OF THE APPLICATION FOR A LOAN FROM THE FUND; OR
   (II) EXECUTION OF A SWORN AFFIDAVIT ATTESTING THAT SUCH A  POLICY  AND
 PRACTICE  SHALL  BE  INSTITUTED  IN  THE RESTAURANT WITHIN SIX MONTHS OF
 RECEIPT OF A LOAN FROM THE FUND.
   4. (A) A LOAN MADE PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE
 FORGIVEN IN ITS ENTIRETY BY THE COMMISSIONER IF THE  FOLLOWING  CRITERIA
 ARE MET:
   (I)  THE  RESTAURANT  PROVIDES  PROOF  TO THE COMMISSIONER THAT IT HAS
 PARTICIPATED IN EQUITY TRAINING WITHIN SIX  MONTHS  OF  RECEIPT  OF  THE
 INTEREST-FREE LOAN FROM THE FUND; AND
   (II)  THE  RESTAURANT PROVIDES PROOF OF IMPLEMENTATION OF A POLICY AND
 PRACTICE OF PAYING ITS TIPPED EMPLOYEES NOT LESS THAN THE  FULL  MINIMUM
 HOURLY  WAGE  RATE  AS  DEFINED BY SECTION SIX HUNDRED FIFTY-TWO OF THIS
 CHAPTER AND THAT SUCH POLICY AND PRACTICE HAS BEEN  IN  EFFECT  FOR  NOT
 LESS  THAN  TWO YEARS FROM THE DATE OF RECEIPT OF THE LOAN FROM THE FUND
 OR, ALTERNATIVELY, THE ACTUAL DATE OF THE IMPLEMENTATION OF SUCH  POLICY
 AND  PRACTICE  IS NOT GREATER THAN SIX MONTHS AFTER RECEIPT OF THE LOAN,
 WHICHEVER IS LATER.
   (B) IF A RESTAURANT THAT RECEIVES A LOAN UNDER THIS SECTION  FAILS  TO
 MEET AND CONTINUE THE REQUIREMENTS FOR ACCEPTING SUCH LOAN, AS SET FORTH
 PURSUANT  TO  THIS  SECTION  AND  AS  THE COMMISSIONER MAY REQUIRE, SUCH
 RESTAURANT SHALL BE REQUIRED TO PAY BACK THE TOTAL AMOUNT  OF  THE  LOAN
 S. 5567                             6
 
 ACCEPTED  PLUS  A  PENALTY  OF  THREE PERCENT OF THE TOTAL AMOUNT OF THE
 LOAN.
   5.  (A)  THE  DEPARTMENT  SHALL DEVELOP AN EQUITY TRAINING PROGRAM FOR
 OWNERS AND  MANAGERS  OF  QUALIFYING  RESTAURANTS.  IN  DEVELOPING  SUCH
 PROGRAM,  THE  DEPARTMENT  MAY UTILIZE EXISTING DEPARTMENT RESOURCES AND
 PROGRAMS AND MAY CONSULT WITH  ORGANIZATIONS  THAT  HAVE  A  HISTORY  OF
 TRAINING  EMPLOYERS  ON  BEST  PRACTICES  TO INCREASE WAGES AND TEACHING
 GENDER AND RACIAL EQUITY.
   (B) THE EQUITY TRAINING PROGRAM SHALL INCLUDE INFORMATION AND  MATERI-
 ALS PERTAINING TO THE BEST PRACTICES WITH RESPECT TO:
   (I)  RAISING  WAGES TO PROFITABLY PAY A FULL MINIMUM WAGE TO ALL WORK-
 ERS;
   (II) EQUITABLE SHARING OF TIPS;
   (III) INCREASING RACE AND GENDER EQUITY AMONG EMPLOYEES, INCLUDING:
   (A) ASSESSING AND OVERHAULING HIRING, TRAINING, PROMOTION  AND  EVALU-
 ATION PRACTICES TO ENSURE EQUITY FOR WOMEN AND PEOPLE OF COLOR;
   (B) IMPLICIT BIAS TESTING AND TRAINING FOR MANAGEMENT.
   (C) MATERIALS PROVIDED TO PERSONS PARTICIPATING IN THE EQUITY TRAINING
 SHALL INCLUDE:
   (I) A CALCULATION THAT ALLOWS EMPLOYERS TO INPUT THE NUMBER OF EMPLOY-
 EES  AND  THE MENU PROCESS AT THE QUALIFYING RESTAURANT AND PROVIDES THE
 EMPLOYER WITH THE BEST PRICING OPTIONS TO INCREASE WAGES PROFITABLY;
   (II) THREE MODELS AND CASE STUDIES OF EQUITABLE  WAGE/GRATUITY  STRUC-
 TURES,  INCLUDING  ONE  THAT  ADDRESSES  SERVICE  CHARGES  AND  ONE THAT
 ADDRESSES GRATUITY-FREE MODELS;
   (III) CASE STUDIES OF THE BOTTOM-LINE BENEFITS  OF  INCREASING  EQUITY
 AMONG EMPLOYEES; AND
   (IV) A MODEL POLICY TO ADDRESS SEXUAL HARASSMENT.
   (D)  THE  DEPARTMENT  SHALL  PROVIDE QUALIFYING RESTAURANT OWNERS WITH
 TECHNICAL ASSISTANCE TO HELP SUCH  OWNERS  TO  DEVELOP  THEIR  OWN  WAGE
 INCREASE STRUCTURE.
   (E)  THE  DEPARTMENT IS AUTHORIZED TO EXPEND UP TO SEVEN HUNDRED FIFTY
 THOUSAND DOLLARS  FOR  PURPOSES  OF  IMPLEMENTING  THE  EQUITY  TRAINING
 DESCRIBED IN THIS SUBDIVISION.
   6.  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO MODIFY IN ANY WAY AN
 EMPLOYEE'S RIGHT TO RECEIVE GRATUITIES PURSUANT TO SECTION  ONE  HUNDRED
 NINETY-SIX-D OF THIS ARTICLE.
   7.  THE  COMMISSIONER IS AUTHORIZED TO PROMULGATE, AMEND AND/OR REPEAL
 SUCH RULES  AND  REGULATIONS  AS  MAY  BE  NECESSARY  TO  IMPLEMENT  THE
 PROVISIONS OF THIS SECTION.
   § 6. The state finance law is amended by adding a new section 97-ii to
 read as follows:
   §  97-II.  RESTAURANT  AND  RESTAURANT  WORKER RECOVERY FUND. THERE IS
 HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF  TAXATION
 AND  FINANCE  AND  THE  COMPTROLLER,  A  SPECIAL FUND TO BE KNOWN AS THE
 RESTAURANT AND RESTAURANT WORKER RECOVERY FUND. MONIES IN THE FUND SHALL
 BE KEPT SEPARATE FROM AND NOT COMMINGLED WITH OTHER FUNDS  HELD  IN  THE
 CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE.
   2.  THE FUND SHALL CONSIST OF ALL MONIES APPROPRIATED FOR ITS PURPOSE,
 ALL MONIES REQUIRED BY THIS SECTION OR ANY OTHER PROVISIONS OF LAW TO BE
 PAID INTO OR CREDITED TO SUCH FUND, AND ALL  OTHER  MONEY  APPROPRIATED,
 CREDITED,  OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT
 TO LAW. NOTHING IN THIS SECTION SHALL PREVENT THE STATE  FROM  RECEIVING
 GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS DEFINED IN
 THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
 S. 5567                             7
 
   3. MONIES OF THE FUND SHALL, AFTER APPROPRIATION BY  THE  LEGISLATURE,
 BE  MADE AVAILABLE TO THE DEPARTMENT OF LABOR AND SHALL BE EXPENDED ONLY
 FOR THE PURPOSES OF LOANS AND EQUITY TRAINING THROUGH AND ADMINISTRATIVE
 EXPENSES OF THE RESTAURANT AND  RESTAURANT  WORKER  RECOVERY  FUND  LOAN
 PROGRAM  ESTABLISHED  BY SECTION ONE HUNDRED NINETY-EIGHT-F OF THE LABOR
 LAW. MONIES SHALL BE PAYABLE FROM THE FUND BY THE COMMISSIONER OF  TAXA-
 TION AND FINANCE ON VOUCHERS APPROVED BY THE COMMISSIONER OF LABOR.
   4.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF LABOR SHALL PROVIDE A WRITTEN REPORT TO THE GOVERNOR,  THE  TEMPORARY
 PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE
 SENATE FINANCE COMMITTEE AND THE CHAIR OF THE ASSEMBLY  WAYS  AND  MEANS
 COMMITTEE.  SUCH  REPORT  SHALL  INCLUDE HOW THE MONIES OF THE FUND WERE
 UTILIZED DURING THE PRECEDING CALENDAR YEAR AND SHALL INCLUDE:  (A)  THE
 AMOUNT  OF  MONEY  DISBURSED  FROM THE FUND; (B) THE RECIPIENTS OF LOANS
 FROM THE FUND; (C)  THE  AMOUNT  AWARDED  TO  EACH  RECIPIENT;  (D)  THE
 PURPOSES FOR WHICH SUCH LOANS WERE GRANTED; (E) THE AMOUNT OF LOANS THAT
 WERE  REPAID  UNDER  THE  RESTAURANT AND RESTAURANT WORKER RECOVERY FUND
 LOAN PROGRAM; (F) THE AMOUNT OF  LOANS  THAT  WERE  FORGIVEN  UNDER  THE
 RESTAURANT  AND  RESTAURANT WORKER RECOVERY FUND LOAN PROGRAM; AND (G) A
 SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTIMATES  OF
 ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEEDING FISCAL
 YEARS, ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL YEAR.
   § 7. The sum of fifty million dollars ($50,000,000), or so much there-
 of  as  may  be  available,  is hereby appropriated to the department of
 labor from any moneys in the state treasury in the general fund  to  the
 credit  of  the  state purposes account, not otherwise appropriated, and
 made  immediately  available,  for  the  purpose  of  carrying  out  the
 provisions  of  this  act. Such moneys shall be payable on the audit and
 warrant of the state comptroller on vouchers certified  or  approved  by
 the commissioner of labor in the manner prescribed by law.
   §  8. Upon the expiration and repeal of this act, any monies remaining
 in the restaurant and restaurant worker recovery fund established pursu-
 ant to section 97-ii of the state finance law shall be refunded  to  the
 state  treasury  in the general fund to the credit of the state purposes
 account.
   § 9. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder of this act, but shall  be  confined
 in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
 section or part of this act directly  involved  in  the  controversy  in
 which  such  judgment shall have been rendered. It is hereby declared to
 be the intent of the legislature that this act would have  been  enacted
 even  if  such invalid clause, sentence, paragraph, subdivision, section
 or part of this act had not been included herein.
   § 10. This act shall take effect immediately and shall expire  and  be
 deemed repealed July 1, 2025.

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2023-S5567A (ACTIVE) - Details

See Assembly Version of this Bill:: A1710
Current Committee:: Senate Finance
Law Section:: Labor Law
Laws Affected:: Amd §§196-d, 651, 652 & 653, Lab L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S8406
2021-2022: S808, A10203

2023-S5567A (ACTIVE) - Summary

Provides for minimum wage requirements for miscellaneous industry workers.

2023-S5567A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5567A

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the labor law, in relation to providing for minimum wage
requirements for miscellaneous industry workers

 
PURPOSE:

Provides for minimum wage requirements for miscellaneous industry work-
ers; appropriation

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 196-d of Labor Law to allow tip sharing by
waiters with all employees.

Section 2 amends Section 651 of the Labor Law by adding new subdivision
10 to define "miscellaneous industry workers."

Section 3 amends subdivisions 2 and 4 of Section 652 the Labor Law to

set a schedule on which cash wages for food service workers, service
employees, and miscellaneous industry workers will increase until that
wage is equivalent to the minimum wage.

In New York City, the cash wage for food service employees receiving
tips will be as follows:

$12.77 per hour on or after January 1, 2024

$14.88 per hour on or after January 1, 2025

$17.00 per hour on or after January 1, 2026

Beginning on January 1, 2027, the cash wage cannot be less than the
minimum wage.

In Nassau, Suffolk, and Westchester Counties the cash wage for food
service employees receiving tips will be as follows:

$12.77 per hour on or after January 1, 2024

$14.88 per hour on or after January 1, 2025

$17.00 per hour on or after January 1, 2026

Beginning on January 1, 2027, the cash wage cannot be less than the
minimum wage.

In all other counties, the cash wage for food service employees receiv-
ing tips will be as follows:

$11.50 per hour on or after January 1, 2024

$13.00 per hour on or after January 1, 2025

$14.50 per hour on or after January 1, 2026

$16.00 per hour on or after January 1, 2027

Beginning on January 1, 2028, the cash wage cannot be less than the
minimum wage.

For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in New York City must not be less than the cash wage
rate described pursuant to subdivision 1-a(a) of Section 652 of the
Labor Law.

For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in the Nassau, Suffolk, and Westchester counties must
not be less than the cash wage rate described pursuant to subdivision
1-a(b) of Section 652 of the Labor Law.

For miscellaneous industry workers receiving tips pursuant to 12 NYCRR
part 142 working in all other counties must not be less than the cash
wage rate described pursuant to subdivision 1-a(c) of Section 652 of the
Labor Law.

Section 4 amends subdivision 2 of Section 653 of the Labor Law, to
ensure that the wage order under this subdivision does not authorize a
wage lower than the previously and statutorily authorized minimum wage.

Section 5 sets forth a severability clause.

Section 6 sets forth the effective date.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSIONS:

The amended version of this bill changes the schedule of minimum wage
increases to track the new minimum wage law that was included in the
SFY2023-24 budget that is now in Section 652 1-a and 1-b of the Labor
Law. The amended bill also removes the restaurant and restaurant worker
recovery fund loan program and its respective appropriation.

 
JUSTIFICATION:

For many years, employers of food service employees have been provided
with a credit that reduces the hourly minimum wage paid to employees
receiving gratuities. These employers now pay $7.50 per hour to workers,
so long as workers receive on average the difference between their
reduced minimum wage and the statutory minimum wage in tips, which has
led to a subminimum wage. Allowing for the tip credit has created many
inequities in food service work.

Employees who are not made whole by gratuities face arduous legal proc-
esses to recover their owed wages, involving complicated record- keeping
and inadequate legal remedies. Reliance on tips has also created an
environment where workers are victimized, and in some cases, encouraged
to turn a blind eye, to rampant discrimination and sexual harassment by
clientele and managers. This results in annual restaurant employee sexu-
al harassment claims to the EEOC at five times the rate of other indus-
tries. Eight states (Alaska, California, Maine, Minnesota, Montana,
Nevada, Oregon, and Washington) have eliminated the tipped credit and
required employers to pay the full minimum wage to employees. Those
states have seen growth in the restaurant industry and a more equitable

and experienced workforce.  Washington, DC and Portland, Maine have also
passed this via ballot initiative.

New York's two-tiered wage system presents challenges for employers as
well as workers. Unlike many other laws, wage and hour laws put the onus
on employers to keep accurate records and follow the law, which take up
large amounts of time and money in monitoring compliance.  Maintaining
the necessary records and compliance of a two-tiered wage system exposes
employers to additional liability.

In short, it is time for New York to join other states and improve the
working conditions in the restaurant industry by eliminating the sub-mi-
nimum wage. Employers would not be prohibited from allowing for restau-
rant gratuities, but gratuities would no longer make up the difference
between wages received from the restaurant and the actual minimum wage.

Providing equity and fairness to restaurant workers would help reduce
the wage gap and bring New York in line with many of its sister states
in workers' rights and fairness on the job. This bill puts tipped work-
ers in food service on a path to receive the full minimum wage by 2028.

Additionally, the bill codifies wage increases ordered by former Gover-
nor Cuomo for miscellaneous workers, such as nail salon workers, hair-
dressers, car wash workers, etc. The bill will eliminate the subminimum
wage for those industries by December 31, 2025.

The bill also updates New York law considering recent changes in federal
Department of Labor regulations on tip sharing. These changes now allow
tip sharing between all employees, including those who work in "back of
house" roles, such as cooks and dishwashers, and those who do not
receive tips. However, this practice is currently barred under New York
State law. This bill will allow tip sharing among all employees to
ensure greater equity in wage earning between front and back of house
employees.

 
LEGISLATIVE HISTORY:

2021-2022: S.808-A - Amend and Recommit to Labor/A.10203 - Referred to
Labor

 
STATE AND LOCAL FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S5567A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5567--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 8, 2023
                                ___________
 
 Introduced  by  Sens.  JACKSON,  BRISPORT,  CLEARE,  COMRIE,  FERNANDEZ,
   GIANARIS, GONZALEZ, HOYLMAN-SIGAL, LIU, MAY,  MYRIE,  PERSAUD,  RAMOS,
   RIVERA,  SALAZAR,  SERRANO,  THOMAS -- read twice and ordered printed,
   and when printed to be  committed  to  the  Committee  on  Finance  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the labor law, in relation to providing for minimum wage
   requirements for miscellaneous industry workers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 196-d of the labor law, as added by chapter 1007 of
 the laws of 1968, is amended to read as follows:
   § 196-d. Gratuities. No employer or [his] THEIR agent or an officer or
 agent  of  any  corporation, or any other person shall demand or accept,
 directly or indirectly, any part  of  the  gratuities,  received  by  an
 employee, or retain any part of a gratuity or of any charge purported to
 be  a  gratuity  for  an employee. This provision shall not apply to the
 checking of hats, coats or other apparel. Nothing  in  this  subdivision
 shall be construed as affecting the allowances from the minimum wage for
 gratuities in the amount determined in accordance with the provisions of
 article   nineteen  of  this  chapter  nor  as  affecting  practices  in
 connection with banquets and  other  special  functions  where  a  fixed
 percentage  of  the  patron's  bill  is  added  for gratuities which are
 distributed to employees, nor to the sharing of tips by a waiter, IF THE
 EMPLOYER TAKES A CREDIT FOR GRATUITIES AS PERMITTED BY  SUBDIVISION  TWO
 OF  SECTION SIX HUNDRED FIFTY-TWO OF THIS CHAPTER with a busboy or simi-
 lar employee, OR, IF THE EMPLOYER DOES NOT TAKE A CREDIT FOR  GRATUITIES
 AS PERMITTED BY SUBDIVISION TWO OF SECTION SIX HUNDRED FIFTY-TWO OF THIS
 CHAPTER, WITH ANY OTHER NON-MANAGERIAL AND NON-SUPERVISORY EMPLOYEES.
   §  2. Section 651 of the labor law is amended by adding a new subdivi-
 sion 10 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06920-05-3

 S. 5567--A                          2
 
   10. "MISCELLANEOUS INDUSTRY WORKER" MEANS ANY EMPLOYEE COVERED BY  THE
 MINIMUM WAGE ORDER FOR MISCELLANEOUS INDUSTRIES AND OCCUPATIONS PURSUANT
 TO  THE  PROVISIONS OF 12 NYCRR PART 142, INCLUDING, BUT NOT LIMITED TO,
 CAR WASH ATTENDANTS, NAIL SALON WORKERS, TOW TRUCK DRIVERS,  DOG  GROOM-
 ERS,  WEDDING PLANNERS, TOUR GUIDES, VALET PARKING ATTENDANTS, HAIRDRES-
 SERS, AESTHETICIANS, GOLF AND TENNIS INSTRUCTORS, AND DOOR-PERSONS.
   § 3. Subdivisions 2 and 4 of section 652 of the labor law, as  amended
 by section 3 of part S of chapter 56 of the laws of 2023, 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; provided,
 however, that the minimum wage order for farm workers codified  at  part
 one  hundred  ninety  of  title twelve of the New York code of rules and
 regulations in effect on January first, two  thousand  twenty  shall  be
 deemed to be a wage order established and adopted under this article and
 shall  remain  in full force and effect except as modified in accordance
 with the provisions of this article or article nineteen-A of this  chap-
 ter.
   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 subdivisions
 one, one-a, and one-b 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, EXCEPT THAT THE HOURLY
 CASH WAGE FOR FOOD SERVICE WORKERS, SERVICE EMPLOYEES AND  MISCELLANEOUS
 INDUSTRY  WORKERS  WHO RECEIVE TIPS SHALL NOT BE LESS THAN THE CASH WAGE
 AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, AND THE MAXIMUM  CREDIT
 FOR  TIPS  IN MINIMUM WAGE ORDERS SHALL BE MODIFIED SO THAT SUCH CREDIT,
 WHEN COMBINED WITH SUCH CASH WAGE, IS EQUAL TO THE MINIMUM WAGE, AND THE
 HOURLY CASH WAGE FOR MISCELLANEOUS INDUSTRY WORKERS SHALL  NOT  BE  LESS
 THAN  THE CASH WAGE AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION. 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.
   4.  [Notwithstanding  subdivisions  one, one-a, one-b, 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 near-
 est  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  exceed the minimum wage in effect pursuant to
 subdivisions one, one-a, and one-b of this section and provided  further
 that  no  other cash wage is established pursuant to section six hundred
 fifty-three of this article] (A) NOTWITHSTANDING  SUBDIVISIONS  ONE  AND
 TWO OF THIS SECTION AND SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE,
 THE  WAGE  FOR AN EMPLOYEE WHO IS A FOOD SERVICE WORKER SERVICE EMPLOYEE
 RECEIVING TIPS AND PAID PURSUANT TO THE PROVISIONS OF 12 NYCRR PART  146
 SHALL  BE,  FOR EACH HOUR WORKED IN THE CITY OF NEW YORK, A CASH WAGE OF
 NOT LESS THAN:
   $12.77 PER HOUR ON AND AFTER JANUARY 1, 2024;
   $14.88 PER HOUR ON AND AFTER JANUARY 1, 2025;
 S. 5567--A                          3
 
   $17.00 PER HOUR ON AND AFTER JANUARY 1, 2026, AND BEGINNING ON JANUARY
 FIRST, TWO THOUSAND TWENTY-SEVEN, A CASH WAGE RATE  ESTABLISHED  BY  THE
 COMMISSIONER  ANNUALLY, INDEXED TO INFLATION AS DESCRIBED IN SUBDIVISION
 ONE-B OF THIS SECTION.
   (B)  NOTWITHSTANDING  SUBDIVISIONS  ONE  AND  TWO  OF THIS SECTION AND
 SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE, THE WAGE FOR AN EMPLOY-
 EE WHO IS A FOOD SERVICE WORKER OR SERVICE EMPLOYEE RECEIVING  TIPS  AND
 PAID  PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 146 SHALL BE, FOR EACH
 HOUR WORKED IN THE COUNTIES OF NASSAU, SUFFOLK AND WESTCHESTER,  A  CASH
 WAGE OF NOT LESS THAN:
   $12.77 PER HOUR ON AND AFTER JANUARY 1, 2024;
   $14.88 PER HOUR ON AND AFTER JANUARY 1, 2025;
   $17.00 PER HOUR ON AND AFTER JANUARY 1, 2026, AND BEGINNING ON JANUARY
 FIRST,  TWO  THOUSAND  TWENTY-SEVEN, A CASH WAGE RATE ESTABLISHED BY THE
 COMMISSIONER ANNUALLY, INDEXED TO INFLATION AS DESCRIBED IN  SUBDIVISION
 ONE-B OF THIS SECTION.
   (C)  NOTWITHSTANDING  SUBDIVISIONS  ONE  AND  TWO  OF THIS SECTION AND
 SECTION SIX HUNDRED FIFTY-THREE OF THIS ARTICLE, THE WAGE FOR AN EMPLOY-
 EE WHO IS A FOOD SERVICE WORKER OR SERVICE EMPLOYEE RECEIVING  TIPS  AND
 PAID  PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 146 SHALL BE, FOR EACH
 HOUR WORKED OUTSIDE THE CITY OF NEW YORK AND  THE  COUNTIES  OF  NASSAU,
 SUFFOLK AND WESTCHESTER, A CASH WAGE OF NOT LESS THAN:
   $11.50 PER HOUR ON AND AFTER JANUARY 1, 2024;
   $13.00 PER HOUR ON AND AFTER JANUARY 1, 2025;
   $14.50 PER HOUR ON AND AFTER JANUARY 1, 2026;
   $16.00 PER HOUR ON AND AFTER JANUARY 1, 2027, AND BEGINNING ON JANUARY
 FIRST,  TWO  THOUSAND  TWENTY-EIGHT, A CASH WAGE RATE ESTABLISHED BY THE
 COMMISSIONER ANNUALLY, INDEXED TO INFLATION AS DESCRIBED IN  SUBDIVISION
 ONE-B OF THIS SECTION.
   (D) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR  AN  EMPLOYEE  WHO IS A MISCELLANEOUS INDUSTRY WORKER RECEIVING TIPS
 AND PAID PURSUANT TO THE PROVISIONS OF 12 NYCRR PART 142  SHALL  BE  FOR
 EACH  HOUR  WORKED IN THE CITY OF NEW YORK, A CASH WAGE OF NOT LESS THAN
 THE CASH WAGE RATE AS DESCRIBED IN PARAGRAPH (A) OF SUBDIVISION ONE-A OF
 THIS SECTION.
   (E) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR AN EMPLOYEE WHO IS A MISCELLANEOUS INDUSTRY  WORKER  RECEIVING  TIPS
 AND  PAID  PURSUANT  TO THE PROVISIONS OF 12 NYCRR PART 142 SHALL BE FOR
 EACH HOUR WORKED IN THE COUNTIES OF NASSAU, SUFFOLK AND  WESTCHESTER,  A
 CASH  WAGE OF NOT LESS THAN THE CASH WAGE RATE AS DESCRIBED IN PARAGRAPH
 (B) OF SUBDIVISION ONE-A OF THIS SECTION.
   (F) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
 FOR AN EMPLOYEE WHO IS A MISCELLANEOUS INDUSTRY  WORKER  RECEIVING  TIPS
 AND  PAID  PURSUANT  TO THE PROVISIONS OF 12 NYCRR PART 142 SHALL BE FOR
 EACH HOUR WORKED OUTSIDE THE CITY  OF  NEW  YORK  AND  THE  COUNTIES  OF
 NASSAU,  SUFFOLK  AND WESTCHESTER, A CASH WAGE OF NOT LESS THAN THE CASH
 WAGE RATE AS DESCRIBED IN PARAGRAPH (C) OF  SUBDIVISION  ONE-A  OF  THIS
 SECTION.
   §  4. 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
 S. 5567--A                          4
 
 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, A WAGE ORDER UNDER THIS SUBDIVISION SHALL NOT AUTHORIZE  A
 LESSER  WAGE  THAN  THE PREVIOUSLY AND STATUTORILY MANDATED MINIMUM WAGE
 FOR SUCH EMPLOYEES.
   § 5. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder of this act, but shall  be  confined
 in  its  operation  to  the  clause,  sentence,  paragraph, subdivision,
 section or part of this act directly  involved  in  the  controversy  in
 which  such  judgment shall have been rendered. It is hereby declared to
 be the intent of the legislature that this act would have  been  enacted
 even  if  such invalid clause, sentence, paragraph, subdivision, section
 or part of this act had not been included herein.
   § 6. This act shall take effect immediately.

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Senate Bill S5567A

Sponsored By

Current Bill Status - In Senate Committee Finance Committee

Bill Amendments

co-Sponsors

2023-S5567 - Details

2023-S5567 - Summary

2023-S5567 - Sponsor Memo

2023-S5567 - Bill Text download pdf

co-Sponsors

2023-S5567A (ACTIVE) - Details

2023-S5567A (ACTIVE) - Summary

2023-S5567A (ACTIVE) - Sponsor Memo

2023-S5567A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5567A

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Sponsored By

Current Bill Status - In Senate Committee Finance Committee

Bill Amendments

co-Sponsors

2023-S5567 - Details

2023-S5567 - Summary

2023-S5567 - Sponsor Memo

2023-S5567 - Bill Text download pdf

co-Sponsors

2023-S5567A (ACTIVE) - Details

2023-S5567A (ACTIVE) - Summary

2023-S5567A (ACTIVE) - Sponsor Memo

2023-S5567A (ACTIVE) - Bill Text download pdf

Comments