STATE OF NEW YORK
        ________________________________________________________________________
                                          5086
                               2017-2018 Regular Sessions
                    IN SENATE
                                      March 7, 2017
                                       ___________
        Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
          when printed to be committed to the Committee on Labor
        AN ACT to amend the labor law, in relation to requiring an expert analy-
          sis and public hearings before wage orders shall take effect
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Subdivision 2 of section 652 of the labor law, as amended
     2  by chapter 38 of the laws of 1990, is amended to read as follows:
     3    2. Existing wage orders. (a) The minimum wage orders in effect on  the
     4  effective date of this act shall remain in full force and effect, except
     5  as modified in accordance with the provisions of this article.
     6    (b)  Such minimum wage orders shall be modified by the commissioner to
     7  increase all monetary amounts specified therein in the  same  proportion
     8  as  the  increase  in the hourly minimum wage as provided in subdivision
     9  one of this section, including the amounts  specified  in  such  minimum
    10  wage  orders  as  allowances  for  gratuities, and when furnished by the
    11  employer to its employees, for meals, lodging, apparel  and  other  such
    12  items, services and facilities. All amounts so modified shall be rounded
    13  off  to the nearest five cents. The modified orders shall be promulgated
    14  by the commissioner without a public hearing, and without reference to a
    15  wage board, and shall become effective on the  effective  date  of  such
    16  increases  in  the  minimum  wage  except  as otherwise provided in this
    17  subdivision, notwithstanding any other provision of this article.
    18     (c) Notwithstanding any provision of law to the contrary  and  except
    19  as  provided for in section three of the chapter of laws of two thousand
    20  seventeen that added this paragraph, any minimum wage order  adopted  on
    21  or  after  the  effective  date  of  the chapter of laws of two thousand
    22  seventeen that added this paragraph, including any wage order establish-
    23  ing or modifying overtime thresholds for employees  paid  a  salary  for
    24  services, shall only be adopted if the commissioner conducts an analysis
    25  of  the  effect of the increase in such order including, but not limited
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10401-01-7

        S. 5086                             2
     1  to, the impact upon employers, employees and the economy  of  the  state
     2  and  the  affected  regions  within the state and following at least two
     3  public hearings, with at least one such hearing being  held  outside  of
     4  New  York  city.  In  conducting  the  analysis,  the commissioner shall
     5  consult with the department's division of research and  statistics,  the
     6  United  States department of labor, the federal reserve bank of New York
     7  and other economic experts. The commissioner  shall  reference  well-es-
     8  tablished  economic indexes and accepted economic factors in determining
     9  whether a modification to the minimum wage order is  justified  and  the
    10  extent  of  any  such  modification.  Any analysis shall be separate and
    11  distinct from an investigation by the  commissioner  and  a  report  and
    12  recommendation  by  a  wage  board related to an increase in the minimum
    13  wage, as provided for in this article.
    14    § 2. Subdivision 5 of section 652 of the  labor  law,  as  amended  by
    15  section  2  of  part  K of chapter 54 of the laws of 2016, is amended to
    16  read as follows:
    17    5. Notwithstanding subdivisions one and two of this section, meal  and
    18  lodging  allowances  for  a  food  service  worker receiving a cash wage
    19  pursuant to subdivision four of this section  shall  not  increase  more
    20  than two-thirds of the increase [required] authorized by subdivision two
    21  of  this  section  as applied to state wage orders in effect pursuant to
    22  subdivision one of this section.
    23    § 3.  Notwithstanding  any  law  to  the  contrary,  any  increase  or
    24  increases  in a minimum wage pursuant to a wage order adopted by rule on
    25  December 28, 2016 but not yet applicable on the effective date  of  this
    26  act  shall  not apply unless and until such wage order complies with the
    27  requirements of this act.
    28    § 4. This act shall take effect immediately  and  apply  to  any  wage
    29  orders adopted on or after such date.