BILL NUMBER: S8474
SPONSOR: MAYER
 
TITLE OF BILL:
An act to amend the labor law, in relation to extending the authority
and oversight of wage boards to include benefits and working conditions
and changes the reference to such boards as workers' boards
 
PURPOSE OR GENERAL IDEA OF BILL:
To permit workers' boards to assess and make recommendations on minimum
wages, benefits, and working conditions to better protect workers and
improve workers' economic security and well-being, and to level the
playing field among employers so that there is not a "race to the
bottom" at the expense of employees.
 
SUMMARY OF PROVISIONS:
Section 1 sets out the legislative intent, underscoring the evolving
nature of employer-employee relations since the establishment of the
minimum wage in New York, with emphasis on developing additional stand-
ards regarding benefits and working conditions through workers' boards
to meet new economic challenges.
Section 2 amends Section 650 of the labor law to include, in addition to
minimum wages, the importance of setting minimum benefits and minimum
working conditions to the consideration of employee health, financial
security, and well-being. It also amends the declared policy of the
state to include minimum benefits and working conditions alongside the
minimum wage.
Section 3 amends subdivision 3 of section 651 of the labor law to add
new definitions of "benefits," "working conditions," "eligible represen-
tative, and "worker organization." Benefits are broadly defined to mean
compensation beyond wages and salary. Working conditions include working
hours, protections, safety, and decision-making power. Eligible repre-
sentative means an organization or association eligible to represent
employees in a given occupation or occupations through a workers' board.
Worker organization means an organization that has a demonstrated histo-
ry of representing and advocating for workers.
Section 4 amends section 653 of the labor law to extend the commission-
er's power to investigate wages within the minimum wage law to the
investigation of benefits and working conditions, whether on an occupa-
tion-specific basis, a sector-specific basis, or an industry basis. It
also requires the commissioner to publish notice on the department's
website of any petition of fifty or more residents of the state engaged
in or affected by an occupation or occupations with respect to wages
being paid, benefits being provided, and working conditions. It then
requires the commissioner to conduct an investigation on the contents of
the petition and, should the investigation find sufficient evidence that
the wages, benefits, or working conditions petitioned for are insuffi-
cient to sustain and protect worker health and well-being, appoint a
workers' board to inquire into, report and recommend improvements for
employees in such occupation or occupations. Lastly, it gives the legis-
lature, by joint resolution, the power to direct the commissioner to
appoint a workers' board with respect to one or more occupations.
Section 5 adds a new section 653-a to the labor law to set forth the
duties of workers' boards with respect to evaluating and making find-
ings, and making recommendations regarding wages and compensation,
employee benefits, working conditions, and any appropriate regulations
to set those standards. It also requires the workers' board to conduct
its inquiries in a manner that encourages discussion, negotiation, and
agreement between employers and employees.
Section 6 amends section 654 of the labor law to require the workers'
board and the commissioner to consider the sufficient amount of wages,
benefits, and working conditions necessary to provide adequate mainte-
nance, health, and wellbeing for employees in any occupation or occupa-
tions and any sector or sectors being evaluated when determining the
basis for its proposed regulations and changes. It also requires the
workers' board and the commissioner to consider the value of the work or
classification of the work performed, in addition to wages, benefits,
and working conditions in the state for work of a like or comparable
nature.
Section 7 amends section 655 of the labor law to set forth new standards
for representation and composition of employees and the general public
on workers' boards. it further specifies the duration of service for
workers' board members and repeals provisions that would allow for a
chair to exclude certain board members from the decision-making process
and for the commissioner to place limitations on the ability of workers'
boards to fulfill their duties. New provisions add clarity and detail to
the public hearing process and provide for follow-up workers' methods by
requiring subsequent reports every three years after the initial report.
Finally, this section eliminates the ability of a workers' board to
consider additional exceptions to the minimum wage law.
Section 8 amends section 655 of the labor law to limit the commission-
er's ability to reject the recommendations of a workers' board only to
situations in which the commissioner finds no substantial evidence to
support the recommendations.In industries that the department determines
rely predominantly on public funds, if there is not adequate funding
appropriated, the commissioner may make acceptance of the recommendation
contingent upon a future appropriation or modify the regulations recom-
mended by the board, as long as the modifications do not reduce the
minimum wage, minimum benefits and minimum working conditions currently
required. In addition, if a recommendation is rejected because of insuf-
ficient appropriations, the commissioner shall consult with the commis-
sioner or director of the relevant department or agency to request such
appropriation. This section also prevents the commissioner from modify-
ing recommendations in a way that reduces minimum wages, minimum bene-
fits, or minimum working conditions. Lastly, this section preserves the
ability for any county or municipality from enacting laws or regulations
that set more favorable wages, benefits, or working conditions for work-
ers than those issued by the commissioner pursuant to the workers' board
recommendations.
Section 9 adds a new section 656-a to the labor law which provides that,
if a workers' board does not fulfill its duty to make recommendations
every three years as required by this article, that minimum wages and
minimum benefits shall automatically be increased by the rate of
inflation for the most recent twelve month period ending June of that
year corresponding to the consumer price index (as calculated by the
United States Department of Labor). It further requires any such
increase to take effect on the date which is one year after the end of
such three-year period and shall account for aggregate inflation over
the four years prior to such date.
Section 10 adds a new section 656-b to the labor law which provides that
worker organizations, certified by the Department, provide training to
the workers affected by the decisions of a worker's board. The Depart-
ment will give particular consideration to workers' organizations, such
as labor unions and worker centers, that have experience training work-
ers. The training curriculum will focus changes in compensation and
working conditions, minimum compensation, benefits, and working condi-
tions established or altered by the board; the antiretaliation
protections and enforcement and opportunities for workers to become
involved in board proceedings. The board will review the adequacy of the
curriculum requirements at least annually and shall revise the require-
ments as appropriate.This section also establishes that certified worker
organizations will provide interactive training sessions that meet the
requirements established by the board and make themselves available to
respond to inquiries from workers during and after the training
sessions. The organizations may also conduct surveys of workers who
attend a training session to assess the effectiveness of the training
session and industry compliance with applicable laws, rules, and ordi-
nances governing working conditions or worker health and safety.This
section also establishes employer responsibilities to document worker
participation in the training provided by the certified worker organiza-
tion, and if requested by a certified worker organization, an employer
will provide the names and contact information of the workers who
attended the training session, unless a worker opts out. It also estab-
lishes that employers will compensate workers at their hourly rate of
wages and benefits for each hour of training completed and reasonable
travel expenses if different from their regular work location.
Section 11 amends section 657 of the labor law to make several conform-
ing changes. It requires any minimum wage, minimum benefits, or minimum
working conditions order and regulation issued by the commissioner to be
final unless appealed pursuant to procedures under this article. It adds
eligible representatives to the list of interested persons or groups
allowed to appeal any wage, benefit, or working condition order or regu-
lation issued under this article. It ensures that any appeal by an
employer shall not operate as a stay of a minimum wage or benefits order
or regulation. It allows any third-party employer affected by a wage,
benefits, or working conditions order or regulation that is being
appealed by another employer to obtain a stay of proceedings against
them so long as they provide a security in accordance with the
provisions of this section.
Section 12 amends section 658 of the labor law to add minimum benefits
and minimum working conditions to the set of considerations preventing
an appeal from an order of the commissioner directing compliance with
any provision of this article from bringing under review any other order
or regulation promulgated under this article. It also clarifies that
appeals from wage orders and regulation shall apply to an appeal from a
compliance order.
Section 13 amends section 659 of the labor law to allow the commissioner
or a petition of fifty or more residents of the state affected by an
occupation or occupations to reconvene an order regarding minimum wage,
minimum benefits, or minimum working conditions within six months of its
being in effect in order to recommend whether the order should be modi-
fied. The commissioner may, after reconsideration, propose modifications
as deemed appropriate that shall be in effect thirty days thereafter. It
also prevents any modification reducing the minimum wage, benefits, or
working conditions from being in effect without the unanimous approval
of the workers' board.
Section 14 amends section 660 of the labor law to add benefits and work-
ing conditions to the scope of the commissioner's or authorized repre-
sentative's power of investigation, which includes the ability to enter
any place of business, determine compliance with existing orders and
regulations, and require statements and reports from employers.
Section 15 amends section 661 of the labor law to add benefits to the
list of records that an employer must establish, maintain, and preserve
pursuant to the labor law. It also adds the commissioner's duly author-
ized representative as an appropriate party to whom an employer must
furnish records upon appropriate demand. It also adds benefits or work-
ing conditions to the digest and summary prepared by the commissioner
that every employer shall be required to show in a place of work as
prescribed.
Section 16 amends section 662 of the labor law to add the provision of
benefits less than the benefits applicable under this article or the
subjection of any employee to working conditions inferior to what is
applicable under this article to the set of circumstances that shall
make any employer guilty of a misdemeanor. It also makes the period of
one week during which a violation occurs to constitute a separate
offense for each such violation.
Section 17 amends section 663 of the labor law to add the provision of
benefits less than the minimum benefits or the subjection of working
conditions inferior to the minimum working conditions to the set of
circumstances in which an employee is entitled to recover in a civil
action. It clarifies that the recovery amount in any civil action shall
be the amount of underpayment of wages, the monetary value of the defi-
cient benefits, and the compensation for deficiency in working condi-
tions, including any damages suffered as a result. It also clarifies
that any agreement between employer and employee to work for less than
the minimum wage, less than the minimum benefits, or less than the mini-
mum working conditions shall not be a defense. Lastly, it allows the
commissioner or an eligible representative to bring a civil action for
the same circumstances that an employee can.
Section 18 provides for a severability clause.
Section 19 provides that the effective date shall be one year after the
law takes effect.
 
JUSTIFICATION:
Creating avenues for workers across industries and sectors to band
together and have a strong unified voice represents one of the most
essential modern labor reforms today. While unions and collective
bargaining remain powerful tools for workers to improve working condi-
tions and wages, the dynamics of today's economy demand innovative
approaches to keep up with the times.
"Firm-level" bargaining needs complementary approaches. This is in part
due to the changing nature of business, employers subcontracting to
reduce regulatory oversight and diminish unions' collective bargaining
power, unfounded attacks and misinformation campaigns against unions,
and increased employee turnover from an economic climate in which work-
ers are pitted against one another to compete for stagnant and depressed
wages.
While the minimum wage has endured as a cornerstone of worker
protections in New York, lifting millions out of poverty and creating
sustainable wages and financial security in the process, wages represent
only one piece of a larger worker's rights framework. Benefits, like
childcare and paid leave, can provide critical support for workers in
the face of everyday challenges, and the creation of working conditions
free from physical hazards and undue surveillance can make the workplace
a safer and more productive environment. Despite this, there are few
statutory mechanisms to provide for their uniformity across industry.
This legislation addresses these challenges by establishing updated
methods to combat stagnating wages, benefits, and working conditions
across industries and sectors through the use of newly established
"workers' boards."(1) Workers' boards are government bodies that bring
together representatives of workers, employers, and government to set
minimum wage rates, benefits, and workplace conditions across an entire
occupation, sector, or industry.(2) What distinguishes these bodies is
their ability to lift standards above legislative minimums and address
industry-specific issues.(3) Workers' boards can adjust standards to
account for different levels of training and experience, (4) promote
standardized compensation that helps curtail pay discrimination against
women and people of color,(5) raise sector standards, which in turn can
raise the floor for union contracts, and level the playing field by
ensuring that companies compete on the basis of productivity rather than
by undercutting wages and benefits.(6)
Although.New York's Minimum Wage Act provides for the establishment of
"wage boards,"(7) the narrow scope and discretionary nature of the
circumstances triggering their creation leaves them largely inoperative.
This legislation addresses both issues.
First, it changes "wage boards" to "workers' boards," and adds "bene-
fits" and "working conditions" to the set of criteria that can be recom-
mended and adopted across occupations, industries, and sectors. Second,
it requires the commissioner to facilitate the creation of a workers'
board if a department investigation finds evidence, or at least 50 work-
ers in a sector submit a petition declaring that wages, benefits, or
working conditions in a sector are inadequate to protect worker well-be-
ing. The bill then sets firm timelines from which the department must
act.
Newly established workers' boards are directed to investigate specific
occupations, sectors, and industries to determine the appropriate mini-
mum wages, benefits, and working conditions, and recommend relevant
regulations to ensure those findings are promulgated for adoption. These
new areas of focus hold the promise of gains for middle- and low-income
workers whose wages have stagnated while executive compensation has
soared, who still struggle to balance the demands of childcare with
working full-time, and who too often rely on government sponsored
support to provide the everyday relief necessary to support themselves
and their families.
Wage boards have proven successful in other contexts. In 2019, New York
passed wage board legislation for farm workers, allowing the commission-
er to convene labor, farm, and public representatives to receive testi-
mony and recommend whether and how to reduce the minimum number of hours
a farm worker must work per week before receiving overtime.(8) This
effort, following a two-year negotiating process with 14 public meetings
and hearings, culminated in a September 2022 order to lower the current
60 hour threshold for overtime pay to 40 hours per week by January 1,
2032.(9)
Further, in 2015 the New York State Wage Board was created, which
approved a $15 minimum wage for fast food workers in New York State and
New York City.(10) The extension to benefits and working conditions
under this legislation will increase this positive trend.
At its core, this legislation deploys a modern approach to help workers
come together and gain a stronger voice to advocate for themselves in
order to push industry forward. Workers' boards will help ensure that
all workers, including those prevented from unionizing or who work in
industries with significant barriers to collective bargaining, are
covered by high standards and have a voice in the public discuss