STATE OF NEW YORK ________________________________________________________________________ 5567--A 2023-2024 Regular Sessions IN SENATE 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: 1 Section 1. Section 196-d of the labor law, as added by chapter 1007 of 2 the laws of 1968, is amended to read as follows: 3 § 196-d. Gratuities. No employer or [his] their agent or an officer or 4 agent of any corporation, or any other person shall demand or accept, 5 directly or indirectly, any part of the gratuities, received by an 6 employee, or retain any part of a gratuity or of any charge purported to 7 be a gratuity for an employee. This provision shall not apply to the 8 checking of hats, coats or other apparel. Nothing in this subdivision 9 shall be construed as affecting the allowances from the minimum wage for 10 gratuities in the amount determined in accordance with the provisions of 11 article nineteen of this chapter nor as affecting practices in 12 connection with banquets and other special functions where a fixed 13 percentage of the patron's bill is added for gratuities which are 14 distributed to employees, nor to the sharing of tips by a waiter, if the 15 employer takes a credit for gratuities as permitted by subdivision two 16 of section six hundred fifty-two of this chapter with a busboy or simi- 17 lar employee, or, if the employer does not take a credit for gratuities 18 as permitted by subdivision two of section six hundred fifty-two of this 19 chapter, with any other non-managerial and non-supervisory employees. 20 § 2. Section 651 of the labor law is amended by adding a new subdivi- 21 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 1 10. "Miscellaneous industry worker" means any employee covered by the 2 minimum wage order for miscellaneous industries and occupations pursuant 3 to the provisions of 12 NYCRR part 142, including, but not limited to, 4 car wash attendants, nail salon workers, tow truck drivers, dog groom- 5 ers, wedding planners, tour guides, valet parking attendants, hairdres- 6 sers, aestheticians, golf and tennis instructors, and door-persons. 7 § 3. Subdivisions 2 and 4 of section 652 of the labor law, as amended 8 by section 3 of part S of chapter 56 of the laws of 2023, are amended to 9 read as follows: 10 2. Existing wage orders. The minimum wage orders in effect on the 11 effective date of this act shall remain in full force and effect, except 12 as modified in accordance with the provisions of this article; provided, 13 however, that the minimum wage order for farm workers codified at part 14 one hundred ninety of title twelve of the New York code of rules and 15 regulations in effect on January first, two thousand twenty shall be 16 deemed to be a wage order established and adopted under this article and 17 shall remain in full force and effect except as modified in accordance 18 with the provisions of this article or article nineteen-A of this chap- 19 ter. 20 Such minimum wage orders shall be modified by the commissioner to 21 increase all monetary amounts specified therein in the same proportion 22 as the increase in the hourly minimum wage as provided in subdivisions 23 one, one-a, and one-b of this section, including the amounts specified 24 in such minimum wage orders as allowances for gratuities, and when 25 furnished by the employer to its employees, for meals, lodging, apparel 26 and other such items, services and facilities, except that the hourly 27 cash wage for food service workers, service employees and miscellaneous 28 industry workers who receive tips shall not be less than the cash wage 29 as provided in subdivision four of this section, and the maximum credit 30 for tips in minimum wage orders shall be modified so that such credit, 31 when combined with such cash wage, is equal to the minimum wage, and the 32 hourly cash wage for miscellaneous industry workers shall not be less 33 than the cash wage as provided in subdivision four of this section. All 34 amounts so modified shall be rounded off to the nearest five cents. The 35 modified orders shall be promulgated by the commissioner without a 36 public hearing, and without reference to a wage board, and shall become 37 effective on the effective date of such increases in the minimum wage 38 except as otherwise provided in this subdivision, notwithstanding any 39 other provision of this article. 40 4. [Notwithstanding subdivisions one, one-a, one-b, and two of this 41 section, the wage for an employee who is a food service worker receiving 42 tips shall be a cash wage of at least two-thirds of the minimum wage 43 rates set forth in subdivision one of this section, rounded to the near- 44 est five cents or seven dollars and fifty cents, whichever is higher, 45 provided that the tips of such an employee, when added to such cash 46 wage, are equal to or exceed the minimum wage in effect pursuant to 47 subdivisions one, one-a, and one-b of this section and provided further 48 that no other cash wage is established pursuant to section six hundred 49 fifty-three of this article] (a) Notwithstanding subdivisions one and 50 two of this section and section six hundred fifty-three of this article, 51 the wage for an employee who is a food service worker service employee 52 receiving tips and paid pursuant to the provisions of 12 NYCRR part 146 53 shall be, for each hour worked in the city of New York, a cash wage of 54 not less than: 55 $12.77 per hour on and after January 1, 2024; 56 $14.88 per hour on and after January 1, 2025;
S. 5567--A 3 1 $17.00 per hour on and after January 1, 2026, and beginning on January 2 first, two thousand twenty-seven, a cash wage rate established by the 3 commissioner annually, indexed to inflation as described in subdivision 4 one-b of this section. 5 (b) Notwithstanding subdivisions one and two of this section and 6 section six hundred fifty-three of this article, the wage for an employ- 7 ee who is a food service worker or service employee receiving tips and 8 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each 9 hour worked in the counties of Nassau, Suffolk and Westchester, a cash 10 wage of not less than: 11 $12.77 per hour on and after January 1, 2024; 12 $14.88 per hour on and after January 1, 2025; 13 $17.00 per hour on and after January 1, 2026, and beginning on January 14 first, two thousand twenty-seven, a cash wage rate established by the 15 commissioner annually, indexed to inflation as described in subdivision 16 one-b of this section. 17 (c) Notwithstanding subdivisions one and two of this section and 18 section six hundred fifty-three of this article, the wage for an employ- 19 ee who is a food service worker or service employee receiving tips and 20 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each 21 hour worked outside the city of New York and the counties of Nassau, 22 Suffolk and Westchester, a cash wage of not less than: 23 $11.50 per hour on and after January 1, 2024; 24 $13.00 per hour on and after January 1, 2025; 25 $14.50 per hour on and after January 1, 2026; 26 $16.00 per hour on and after January 1, 2027, and beginning on January 27 first, two thousand twenty-eight, a cash wage rate established by the 28 commissioner annually, indexed to inflation as described in subdivision 29 one-b of this section. 30 (d) Notwithstanding subdivisions one and two of this section, the wage 31 for an employee who is a miscellaneous industry worker receiving tips 32 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for 33 each hour worked in the city of New York, a cash wage of not less than 34 the cash wage rate as described in paragraph (a) of subdivision one-a of 35 this section. 36 (e) Notwithstanding subdivisions one and two of this section, the wage 37 for an employee who is a miscellaneous industry worker receiving tips 38 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for 39 each hour worked in the counties of Nassau, Suffolk and Westchester, a 40 cash wage of not less than the cash wage rate as described in paragraph 41 (b) of subdivision one-a of this section. 42 (f) Notwithstanding subdivisions one and two of this section, the wage 43 for an employee who is a miscellaneous industry worker receiving tips 44 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for 45 each hour worked outside the city of New York and the counties of 46 Nassau, Suffolk and Westchester, a cash wage of not less than the cash 47 wage rate as described in paragraph (c) of subdivision one-a of this 48 section. 49 § 4. Subdivision 2 of section 653 of the labor law, as added by chap- 50 ter 14 of the laws of 2000, is amended to read as follows: 51 (2) The commissioner shall, within six months after enactment of any 52 change in the statutory minimum wage set forth in subdivision one of 53 section six hundred fifty-two of this article, appoint a wage board to 54 inquire and report and recommend any changes to wage orders governing 55 wages payable to food service workers. Such wage board shall be estab- 56 lished consistent with the provisions of subdivision one of section six
S. 5567--A 4 1 hundred fifty-five of this article, except the representatives of the 2 employees shall be selected upon the nomination of the state American 3 Federation of Labor/Congress of Industrial Organizations; and provided, 4 further, that the representatives of the employers shall be selected 5 upon the nomination of the New York State Business Council. [Any wage 6 order authorizing a lesser wage than the previously and statutorily 7 mandated minimum wage for such employees shall be reviewed by the wage 8 board to ascertain at what level such wage order is sufficient to 9 provide adequate maintenance and to protect the health and livelihood of 10 employees subject to such a wage order after a statutory increase in the 11 mandated minimum wage] Notwithstanding section six hundred fifty-five of 12 this article, a wage order under this subdivision shall not authorize a 13 lesser wage than the previously and statutorily mandated minimum wage 14 for such employees. 15 § 5. Severability clause. If any clause, sentence, paragraph, subdivi- 16 sion, section or part of this act shall be adjudged by any court of 17 competent jurisdiction to be invalid, such judgment shall not affect, 18 impair, or invalidate the remainder of this act, but shall be confined 19 in its operation to the clause, sentence, paragraph, subdivision, 20 section or part of this act directly involved in the controversy in 21 which such judgment shall have been rendered. It is hereby declared to 22 be the intent of the legislature that this act would have been enacted 23 even if such invalid clause, sentence, paragraph, subdivision, section 24 or part of this act had not been included herein. 25 § 6. This act shall take effect immediately.