Source: https://www.nysenate.gov/legislation/bills/2019/s8406
Timestamp: 2020-08-08 13:09:45
Document Index: 321161446

Matched Legal Cases: ['§651', 'art 142', 'art 142', 'art 142', 'ART 142', '§ 2', 'ART 146', 'ART 146', 'ART 146', 'ART 142', 'ART 142', 'ART  142', '§ 3']

NY State Senate Bill S8406
senate Bill S8406
Relates to providing for minimum wage requirements for miscellaneous industry workers
Get Status Alerts for S8406
May 22, 2020 referred to labor
S8406 (ACTIVE) - Details
Amd §§651, 652 & 653, Lab L
S8406 (ACTIVE) - Summary
Provides for minimum wage requirements for miscellaneous industry workers.
S8406 (ACTIVE) - Sponsor Memo
BILL NUMBER: S8406
An act to amend the labor law, in relation to providing for minimum wage
requirements for miscellaneous industry workers
To eliminate the sub-minimum wage for food service workers, service
employees, and miscellaneous industry workers who receive tips.
Section 1 amends section 651 of the labor law by adding new subdivision
10 to define "miscellaneous industry workers."
Section 2 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 the City of New York, the cash wage for food service employees
receiving tips will be as follows:
$9.00 per hour on or after December 31, 2020;
$10.50 per hour on or after December 31, 2021;
$12.50 per hour on or after December 31, 2022;
$13.50 per hour on or after December 31, 2023;
$15.00 per hour on or after December 31, 2024;
Beginning on December 31, 2025 the cash wage cannot be less than the
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, 2020;
$9.50 per hour on or after December 31, 2021;
$11.00 per hour on or after December 31, 2022;
$13.00 per hour on or after December 31, 2023;
In all other counties the cash wage for food service employees receiving
tips will be as follows:
$9.25 per hour on or after December 31, 2021;
$10.50 per hour on or after December 31, 2022;
$11.50 per hour on or after December 31, 2023;
$12.50 per hour on or after December 31, 2024;
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,
respectively on or after June 30, 2020;
$15.00 per hour for both high tip and low tip employees, on or after
Beginning on December 31, 2022 the cash wage cannot be less than the
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,
$14.00 per hour for both high tip and low tips employees, on or after
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,
$12.50 per hour for both high tip and low tips employees, on or after
Section 3 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 4 sets forth the effective date.
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.
Allowing for the tip credit has created many inequities in food service
work. Employees who are not made whole by gratuities face arduous legal
processes 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, encour-
aged to turn a blind eye, to rampant discrimination and sexual harass-
ment by clientele and managers. This results in annual restaurant
employee sexual harassment claims to the EEOC at five times the rate of
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 experi-
enced workforce.
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 workers in food service on a path to receive the
full minimum wage by 2025. Additionally, the bill codifies wage
increases ordered by Governor Cuomo for miscellaneous workers, such as
nail salon workers, hairdressers, car wash workers, etc. The bill will
eliminate the subminimum wage for those industries by December 31, 2020.
S8406 (ACTIVE) - Bill Text download pdf
Section  1.  Section  651  of the labor law is amended by adding a new
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.
§ 2. Subdivisions 2 and 4 of section 652 of the labor law, subdivision
2 as amended by chapter 38 of the laws of 1990, subdivision 4 as amended
by section 2 of part K of chapter 54 of the laws of 2016, are amended to
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,  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
LBD15949-01-0
S. 8406                             2
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
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:
$9.00 PER HOUR ON AND AFTER DECEMBER 31, 2020;
$10.50 PER HOUR ON AND AFTER DECEMBER 31, 2021;
$12.00 PER HOUR ON AND AFTER DECEMBER 31, 2022;
$13.50 PER HOUR ON AND AFTER DECEMBER 31, 2023;
$15.00 PER HOUR ON AND AFTER DECEMBER 31, 2024.
BEGINNING ON DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE, THE CASH
WAGE PAYABLE TO A FOOD SERVICE WORKER OR SERVICE WORKER UNDER THIS PARA-
GRAPH SHALL BE NOT LESS THAN THE WAGE ESTABLISHED PURSUANT TO  PARAGRAPH
(A) OF SUBDIVISION ONE OF THIS SECTION.
(C)  NOTWITHSTANDING  SUBDIVISIONS  ONE  AND  TWO  OF THIS SECTION AND
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, 2020;
$9.50 PER HOUR ON AND AFTER DECEMBER 31, 2021;
$11.00 PER HOUR ON AND AFTER DECEMBER 31, 2022;
$13.00 PER HOUR ON AND AFTER DECEMBER 31, 2023;
GRAPH  SHALL BE NOT LESS THAN THE WAGE ESTABLISHED PURSUANT TO PARAGRAPH
(B) OF SUBDIVISION ONE OF THIS SECTION.
(D) NOTWITHSTANDING SUBDIVISIONS ONE  AND  TWO  OF  THIS  SECTION  AND
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:
S. 8406                             3
$9.25 PER HOUR ON AND AFTER DECEMBER 31, 2021;
$10.50 PER HOUR ON AND AFTER DECEMBER 31, 2022;
$11.50 PER HOUR ON AND AFTER DECEMBER 31, 2023;
$12.50 PER HOUR ON AND AFTER DECEMBER 31, 2024.
(C) OF SUBDIVISION ONE 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 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, 2020;
$15.00  PER  HOUR FOR BOTH HIGH TIP AND LOW TIP EMPLOYEES ON AND AFTER
BEGINNING ON DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, THE  CASH
WAGE  PAYABLE  TO  A  MISCELLANEOUS INDUSTRY WORKER UNDER THIS PARAGRAPH
SHALL BE NOT LESS THAN THE WAGE ESTABLISHED PURSUANT TO PARAGRAPH (A) OF
(F) NOTWITHSTANDING SUBDIVISIONS ONE AND TWO OF THIS SECTION, THE WAGE
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-
$14.00 PER HOUR FOR BOTH HIGH TIP AND LOW TIP EMPLOYEES ON  AND  AFTER
BEGINNING  ON DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE, THE CASH
WAGE PAYABLE TO A MISCELLANEOUS INDUSTRY  WORKER  UNDER  THIS  PARAGRAPH
SHALL BE NOT LESS THAN THE WAGE ESTABLISHED PURSUANT TO PARAGRAPH (B) OF
(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
$10.35 OR $10.90 PER HOUR FOR HIGH TIP AND LOW TIP EMPLOYEES,  RESPEC-
$12.50  PER  HOUR FOR BOTH HIGH TIP AND LOW TIP EMPLOYEES ON AND AFTER
SHALL BE NOT LESS THAN THE WAGE ESTABLISHED PURSUANT TO PARAGRAPH (C) OF
§ 3. 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
S. 8406                             4
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.