Tag: New York

NEW YORK COURT UPHOLDS FAST-FOOD WORKER MINIMUM WAGE INCREASE TO $15

Last year, New York Governor Andrew Cuomo announced that a new minimum wage would gradually be phased in for fast-food workers who work at establishments that are part of a chain of 30 or more locations, including those operating under a franchise agreement where the franchisor owns or operates at least 30 such establishments nationally.    Effective December 31, 2015, the new minimum wage increased to $10.50 for New York City fast-food workers and is on track to increase to $15.00 by 2018.  The minimum wage order was issued by the Commissioner of Labor on May 7, 201.   The National Restaurant Association, a trade group, appealed to the Industrial Board of Appeals (IBA) asserting that the wage order was contrary to law.  The IBA confirmed the wage order, and Petitioner appealed the decision in New York state court.

Last month, the Supreme Court of New York, Appellate Division upheld the decision to increase the minimum wage for fast food workers to $15.00 per hour.  The Court rejected Petitioner’s arguments that it violated the U.S. Constitution’s Commerce Clause, that it was wrongfully delegated to a state agency and that the wage board members appointed by the Commissioner were not true representatives of employers and employees.

 

The Court noted the difficult nature of the work in the fast food industry and that workers often work irregular hours, engage in a variety of complex tasks often under extreme pressure and poor working conditions. The Appellate Division upheld the wage order and agreed with the wage board that “fast food chains have recently experienced significant increases in profits without an accompanying rise in wages for their work, implying that those profits were wrung from the necessities of their employees.”

NEW YORK PASSES NATION’S STRONGEST PAID FAMILY LEAVE LAW

On April 1, the New York State Legislature signed into law the strongest and most comprehensive paid family leave policy.  When fully phased in, employees will be eligible for 12 weeks of paid leave to bond with newborns, care for a family member with a serious medical condition or handle responsibilities if someone is called to active military service.  The new policy will be phased in gradually.  Beginning January 1, 2018, workers can get 8 weeks of leave at fifty percent of their weekly pay (capped at $630) followed by up to 10 weeks in 2019 and 2010, and 12 weeks by 2021 with two-third pay.

Currently, the federal Family Leave and Medical Act (FMLA) allows for 12 weeks of leave with no pay.  Unlike the FMLA, New York’s paid leave law will cover full-time and part-time employees and there will be no exemptions for small businesses.  Furthermore, an employee only has to be employed by the company for 6 months, compared to twelve months required by the FMLA.

New York is now the fifth state, after California, New Jersey, Rhode Island and Washington to mandate paid leave.  New York’s bill is the strongest, however.   California and New Jersey offer 6 weeks off, Rhode Island offers 4 weeks, and Washington passed a paid leave law in 2007 but it has not yet been implemented.

MINIMUM WAGE INCREASED FOR HOSPITALITY AND FAST FOOD WORKERS IN NEW YORK

As part of Governor Andrew Cuomo’s initiative to get fair pay for New York workers, Governor Cuomo secured three changes that became effective on December 31, 2015.  First, New York State’s minimum wage increased from $8.75 to $9.00 per hour.  Second, the tipped cash wage amount for tipped hospitality workers, such as hotel workers, increased to $7.50 per hour.  Lastly, the minimum wage for workers in fast food chains in New York City increased to $10.50 per hour and $9.75 per hour for other fast food workers in the state.

 

These rates will increase annually until they reach $15.00 at the end of 2018 for New York City and 2021 for the rest of the state.  This change affects employees who work at fast food chains that have 30 or more locations nationally, such as Dunkin Donuts, KFC, McDonald’s, Pizza Hut, Subway, Taco Bell, Chipotle and others. 

This increase applies to workers who prepare food, stock shelves, clean, work security and perform other tasks.  In addition to receiving the applicable minimum wage, these employees are also entitled to overtime pay at a rate of one-and-one-half times their regular rate of pay for all hours worked over 40 hours per week as well as spread-of-hours pay.

Employees and employers alike should be mindful of these recent changes.