STATE OF NEW YORK ________________________________________________________________________ 1200--A 2025-2026 Regular Sessions IN ASSEMBLY January 9, 2025 ___________ Introduced by M. of A. GONZALEZ-ROJAS, RAMOS, ANDERSON, BICHOTTE HERME- LYN, BORES, K. BROWN, BURDICK, R. CARROLL, CLARK, COLTON, CRUZ, CUNNINGHAM, DAVILA, DeSTEFANO, EPSTEIN, FALL, FORREST, GALLAGHER, GIBBS, GLICK, HEVESI, JACKSON, KELLES, KIM, LEE, LEVENBERG, MAMDANI, MEEKS, MITAYNES, OTIS, RAGA, REYES, RIVERA, ROSENTHAL, ROZIC, SEAWRIGHT, SHIMSKY, SHRESTHA, SIMON, SIMONE, STERN, STIRPE, WEPRIN, VALDEZ, O'PHARROW -- read once and referred to the Committee on Labor -- 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; and to amend the tax law, in relation to establishing the one fair wage reimbursement cred- it 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] serv- 15 er, if the employer takes a credit for gratuities as permitted by subdi- 16 vision two of section six hundred fifty-two of this chapter with a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01382-03-5
A. 1200--A 2 1 [busboy] busser or similar employee, or, if the employer does not take a 2 credit for gratuities as permitted by subdivision two of section six 3 hundred fifty-two of this chapter, with any other non-managerial and 4 non-supervisory employees. 5 § 2. Section 651 of the labor law is amended by adding a new subdivi- 6 sion 10 to read as follows: 7 10. "Miscellaneous industry worker" means any employee covered by the 8 minimum wage order for miscellaneous industries and occupations pursuant 9 to the provisions of 12 NYCRR part 142, including, but not limited to, 10 car wash attendants, nail salon workers, tow truck drivers, dog groom- 11 ers, wedding planners, tour guides, valet parking attendants, hairdres- 12 sers, aestheticians, golf and tennis instructors, and door-persons. 13 § 3. Subdivisions 2 and 4 of section 652 of the labor law, as amended 14 by section 3 of part S of chapter 56 of the laws of 2023, are amended to 15 read as follows: 16 2. Existing wage orders. The minimum wage orders in effect on the 17 effective date of this act shall remain in full force and effect, except 18 as modified in accordance with the provisions of this article; provided, 19 however, that the minimum wage order for farm workers codified at part 20 one hundred ninety of title twelve of the New York code of rules and 21 regulations in effect on January first, two thousand twenty shall be 22 deemed to be a wage order established and adopted under this article and 23 shall remain in full force and effect except as modified in accordance 24 with the provisions of this article or article nineteen-A of this chap- 25 ter. 26 Such minimum wage orders shall be modified by the commissioner to 27 increase all monetary amounts specified therein in the same proportion 28 as the increase in the hourly minimum wage as provided in subdivisions 29 one, one-a, and one-b of this section, including the amounts specified 30 in such minimum wage orders as allowances for gratuities, and when 31 furnished by the employer to its employees, for meals, lodging, apparel 32 and other such items, services and facilities, except that the hourly 33 cash wage for food service workers, service employees and miscellaneous 34 industry workers who receive tips shall not be less than the cash wage 35 as provided in subdivision four of this section, and the maximum credit 36 for tips in minimum wage orders shall be modified so that such credit, 37 when combined with such cash wage, is equal to the minimum wage, and the 38 hourly cash wage for miscellaneous industry workers shall not be less 39 than the cash wage as provided in subdivision four of this section. All 40 amounts so modified shall be rounded off to the nearest five cents. The 41 modified orders shall be promulgated by the commissioner without a 42 public hearing, and without reference to a wage board, and shall become 43 effective on the effective date of such increases in the minimum wage 44 except as otherwise provided in this subdivision, notwithstanding any 45 other provision of this article. 46 4. [Notwithstanding subdivisions one, one-a, one-b, and two of this 47 section, the wage for an employee who is a food service worker receiving 48 tips shall be a cash wage of at least two-thirds of the minimum wage 49 rates set forth in subdivision one of this section, rounded to the near- 50 est five cents or seven dollars and fifty cents, whichever is higher, 51 provided that the tips of such an employee, when added to such cash 52 wage, are equal to or exceed the minimum wage in effect pursuant to 53 subdivisions one, one-a, and one-b of this section and provided further 54 that no other cash wage is established pursuant to section six hundred 55 fifty-three of this article] (a) Notwithstanding subdivisions one and 56 two of this section and section six hundred fifty-three of this article,
A. 1200--A 3 1 the wage for an employee who is a food service worker or service employ- 2 ee receiving tips and paid pursuant to the provisions of 12 NYCRR part 3 146 shall be, for each hour worked in the city of New York, a cash wage 4 of not less than: 5 $12.77 per hour on and after January 1, 2026; 6 $14.88 per hour on and after January 1, 2027; 7 $17.00 per hour on and after January 1, 2028, and beginning on January 8 first, two thousand twenty-nine, a cash wage rate established by the 9 commissioner annually, indexed to inflation as described in subdivision 10 one-b of this section. 11 (b) Notwithstanding subdivisions one and two of this section and 12 section six hundred fifty-three of this article, the wage for an employ- 13 ee who is a food service worker or service employee receiving tips and 14 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each 15 hour worked in the counties of Nassau, Suffolk and Westchester, a cash 16 wage of not less than: 17 $12.77 per hour on and after January 1, 2026; 18 $14.88 per hour on and after January 1, 2027; 19 $17.00 per hour on and after January 1, 2028, and beginning on January 20 first, two thousand twenty-nine, a cash wage rate established by the 21 commissioner annually, indexed to inflation as described in subdivision 22 one-b of this section. 23 (c) Notwithstanding subdivisions one and two of this section and 24 section six hundred fifty-three of this article, the wage for an employ- 25 ee who is a food service worker or service employee receiving tips and 26 paid pursuant to the provisions of 12 NYCRR part 146 shall be, for each 27 hour worked outside the city of New York and the counties of Nassau, 28 Suffolk and Westchester, a cash wage of not less than: 29 $11.50 per hour on and after January 1, 2026; 30 $13.00 per hour on and after January 1, 2027; 31 $14.50 per hour on and after January 1, 2028; 32 $16.00 per hour on and after January 1, 2029, and beginning on January 33 first, two thousand thirty, a cash wage rate established by the commis- 34 sioner annually, indexed to inflation as described in subdivision one-b 35 of this section. 36 (d) 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 city of New York, a cash wage of not less than 40 the cash wage rate as described in paragraph (a) of subdivision one-a of 41 this section. 42 (e) 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 in the counties of Nassau, Suffolk and Westchester, a 46 cash wage of not less than the cash wage rate as described in paragraph 47 (b) of subdivision one-a of this section. 48 (f) Notwithstanding subdivisions one and two of this section, the wage 49 for an employee who is a miscellaneous industry worker receiving tips 50 and paid pursuant to the provisions of 12 NYCRR part 142 shall be for 51 each hour worked outside the city of New York and the counties of 52 Nassau, Suffolk and Westchester, a cash wage of not less than the cash 53 wage rate as described in paragraph (c) of subdivision one-a of this 54 section. 55 § 4. Subdivision 2 of section 653 of the labor law, as added by chap- 56 ter 14 of the laws of 2000, is amended to read as follows:
A. 1200--A 4 1 (2) The commissioner shall, within six months after enactment of any 2 change in the statutory minimum wage set forth in subdivision one of 3 section six hundred fifty-two of this article, appoint a wage board to 4 inquire and report and recommend any changes to wage orders governing 5 wages payable to food service workers. Such wage board shall be estab- 6 lished consistent with the provisions of subdivision one of section six 7 hundred fifty-five of this article, except the representatives of the 8 employees shall be selected upon the nomination of the state American 9 Federation of Labor/Congress of Industrial Organizations; and provided, 10 further, that the representatives of the employers shall be selected 11 upon the nomination of the New York State Business Council. [Any wage 12 order authorizing a lesser wage than the previously and statutorily 13 mandated minimum wage for such employees shall be reviewed by the wage 14 board to ascertain at what level such wage order is sufficient to 15 provide adequate maintenance and to protect the health and livelihood of 16 employees subject to such a wage order after a statutory increase in the 17 mandated minimum wage] Notwithstanding section six hundred fifty-five of 18 this article, a wage order under this subdivision shall not authorize a 19 lesser wage than the previously and statutorily mandated minimum wage 20 for such employees. 21 § 5. The tax law is amended by adding a new section 50 to read as 22 follows: 23 § 50. One fair wage reimbursement credit. (a) General. (1) A taxpayer 24 subject to tax under article nine-A, twenty-two, or thirty-three of this 25 chapter who is an employer who pays wages at rates pursuant to subdivi- 26 sion four of section six hundred fifty-two of the labor law shall be 27 allowed a credit against such tax in an amount to be calculated as 28 follows: 29 (i) For taxable years beginning on or after January first, two thou- 30 sand twenty-six and before January first, two thousand twenty-seven, the 31 amount of the credit allowed under this section shall be equal to the 32 product of the total number of hours during the taxable year worked by 33 eligible employees for which they were paid at the minimum wage rate as 34 defined in subdivision four of section six hundred fifty-two of the 35 labor law and one dollar and fifty cents. 36 (ii) For taxable years beginning on or after January first, two thou- 37 sand twenty-seven and before January first, two thousand twenty-eight, 38 the amount of the credit allowed under this section shall be equal to 39 the product of the total number of hours during the taxable year worked 40 by eligible employees for which they were paid at the minimum wage rate 41 as defined in subdivision four of section six hundred fifty-two of the 42 labor law and one dollar and thirty cents. 43 (iii) For taxable years beginning on or after January first, two thou- 44 sand twenty-eight and before January first, two thousand twenty-nine, 45 the amount of the credit allowed under this section shall be equal to 46 the product of the total number of hours during the taxable year worked 47 by eligible employees for which they were paid at the minimum wage rate 48 as defined in subdivision four of section six hundred fifty-two of the 49 labor law and one dollar and twenty cents. 50 (iv) For taxable years beginning on or after January first, two thou- 51 sand twenty-nine and before January first, two thousand thirty, the 52 amount of the credit allowed under this section shall be equal to the 53 product of the total number of hours during the taxable year worked by 54 eligible employees for which they were paid at the minimum wage rate as 55 defined in subdivision four of section six hundred fifty-two of the 56 labor law and one dollar and ten cents.
A. 1200--A 5 1 (v) For taxable years beginning on or after January first, two thou- 2 sand thirty and before January first, two thousand thirty-one, the 3 amount of the credit allowed under this section shall be equal to the 4 product of the total number of hours during the taxable year worked by 5 eligible employees for which they were paid at the minimum wage rate as 6 defined in subdivision four of section six hundred fifty-two of the 7 labor law and one dollar. 8 (2) In addition, if the federal minimum wage is increased above eight- 9 y-five percent of the minimum wage rate as defined in subdivision four 10 of section six hundred fifty-two of the labor law, the dollar amounts in 11 this subdivision shall be reduced to the difference between the minimum 12 wage rate as defined in subdivision four of section six hundred fifty- 13 two of the labor law and the federal minimum wage. Such reduction shall 14 take effect on the date that employers are required to pay such federal 15 minimum wage. 16 (b) Definitions. The term "eligible employee" shall mean an employee 17 whose wages are set pursuant to subdivision four of section six hundred 18 fifty-two of the labor law. 19 (c) Cross-references. For application of the credit provided for in 20 this section, see the following provisions of this chapter: 21 (1) article 9-A: section 210-B, subdivision 61; 22 (2) article 22: section 606, subsections (i) and (qqq); 23 (3) article 33: section 1511, subdivision (ff). 24 § 6. Section 210-B of the tax law is amended by adding a new subdivi- 25 sion 61 to read as follows: 26 61. One fair wage reimbursement credit. (a) Allowance of credit. A 27 taxpayer shall be allowed a credit, to be computed as provided in 28 section fifty of this chapter, against the tax imposed by this article. 29 (b) Application of credit. The credit allowed under this subdivision 30 for any taxable year may not reduce the tax due for such year to less 31 than the amount prescribed in paragraph (d) of subdivision one of 32 section two hundred ten of this article. However, if the amount of the 33 credit allowed under this subdivision for any taxable year reduces the 34 tax to such amount or if the taxpayer otherwise pays tax based on the 35 fixed dollar minimum amount, any amount of credit thus not deductible in 36 such taxable year will be treated as an overpayment of tax to be credit- 37 ed or refunded in accordance with the provisions of section one thousand 38 eighty-six of this chapter. Provided, however, the provisions of 39 subsection (c) of section one thousand eighty-eight of this chapter 40 notwithstanding, no interest shall be paid thereon. 41 § 7. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 42 of the tax law is amended by adding a new clause (lii) to read as 43 follows: 44 (lii) One fair wage Amount of credit under 45 reimbursement credit subdivision sixty-one of 46 under subsection (qqq) section two hundred ten-B 47 § 8. Section 606 of the tax law is amended by adding a new subsection 48 (qqq) to read as follows: 49 (qqq) One fair wage reimbursement credit. (1) Allowance of credit. A 50 taxpayer shall be allowed a credit, to be computed as provided in 51 section fifty of this chapter, against the tax imposed by this article. 52 (2) Application of credit. If the amount of the credit allowed under 53 this subsection for any taxable year exceeds the taxpayer's tax for such 54 year, the excess will be treated as an overpayment of tax to be credited
A. 1200--A 6 1 or refunded in accordance with the provisions of section six hundred 2 eighty-six of this article, provided, however, that no interest will be 3 paid thereon. 4 § 9. Section 1511 of the tax law is amended by adding a new subdivi- 5 sion (ff) to read as follows: 6 (ff) One fair wage reimbursement credit. (1) Allowance of credit. A 7 taxpayer shall be allowed a credit, to be computed as provided in 8 section fifty of this chapter, against the tax imposed by this article. 9 (2) Application of credit. The credit allowed under this subdivision 10 shall not reduce the tax due for such year to be less than the minimum 11 fixed by paragraph four of subdivision (a) of section fifteen hundred 12 two or section fifteen hundred two-a of this article, whichever is 13 applicable. However, if the amount of the credit allowed under this 14 subdivision for any taxable year reduces the taxpayer's tax to such 15 amount, any amount of credit thus not deductible will be treated as an 16 overpayment of tax to be credited or refunded in accordance with the 17 provisions of section one thousand eighty-six of this chapter. Provided, 18 however, the provisions of subsection (c) of section one thousand eight- 19 y-eight of this chapter notwithstanding, no interest shall be paid ther- 20 eon. 21 § 10. Severability clause. If any clause, sentence, paragraph, subdi- 22 vision, section or part of this act shall be adjudged by any court of 23 competent jurisdiction to be invalid, such judgment shall not affect, 24 impair, or invalidate the remainder of this act, but shall be confined 25 in its operation to the clause, sentence, paragraph, subdivision, 26 section or part of this act directly involved in the controversy in 27 which such judgment shall have been rendered. It is hereby declared to 28 be the intent of the legislature that this act would have been enacted 29 even if such invalid clause, sentence, paragraph, subdivision, section 30 or part of this act had not been included herein. 31 § 11. This act shall take effect immediately and shall apply to taxa- 32 ble years beginning on and after January 1, 2026.