Int. No. 1519
By Council Members Nurse, Cabán, Avilés and Marte
A Local Law to amend the administrative code of the city of New York, in relation to minimum pay for workers
Be it enacted by the Council as follows:
Section 1. Title 20 of the administrative code of the city of New York is amended by adding a new chapter 16 to read as follows:
CHAPTER 16
MINIMUM WAGE
§ 20-1601 Definitions. As used in this chapter, the following terms have the following meanings:
Employee. The term “employee” means any individual employed to work by an employer in any occupation.
Employer. The term “employer” means any person or entity covered by the definition of “employer” set forth in subdivision 6 of section 651 of the labor law.
Qualifying benefits. The term “qualifying benefits” means benefits paid for by an employer and provided to an employee, including health insurance and other supplemental benefits such as flexible spending accounts, commuter benefits, and life insurance, of a dollar valuation determined by the commissioner.
§ 20-1602 Minimum wage required. a. Employers shall pay all employees who receive qualifying benefits no less than a minimum wage of $25 per hour.
b. Employers shall pay employees who do not receive qualifying benefits no less than a minimum wage of $30 per hour.
c. The department shall promulgate rules necessary to carry out the provisions of this chapter, including rules defining the valuation for qualifying benefits for purposes of determining the applicable minimum wage pursuant to subdivisions a and b of this section. Each year the commissioner shall analyze and revise the valuation of qualifying benefits as needed.
§ 20-1603 Annual minimum wage adjustment. a. No later than September 1 of each year the commissioner shall conduct an analysis to determine the amount by which the minimum wage should be adjusted for the following year. The adjustment shall be determined by increasing the then existing minimum wage rate by the rate of change in the average of the 3 most recent consecutive 12-month periods between August 1 and July 31, each over their preceding 12-month periods, published by the United States department of labor in the non-seasonally adjusted consumer price index for northeast region or any successor index as calculated by the United States department of labor.
b. Any adjustment to the minimum wage determined by the commissioner pursuant to the annual analysis required in subdivision a of this section shall become effective on January 1 of the following year.
§ 20-1604 Outreach and education. The commissioner shall conduct outreach and education about the provisions of this chapter. Such outreach and education shall be provided to employers, employees, and members of the public who are likely to be affected by this law. Materials created for such outreach and education shall be made available in the designated citywide languages as defined in section 23-1101.
§ 20-1605 Reporting. The commissioner shall provide annually to the mayor, the speaker of the council and post on the department’s website a report on the enforcement activities undertaken by the department pursuant to this chapter. The report shall include the following information, at minimum:
1. The number and nature of the complaints received;
2. The results of all investigations undertaken, including the number of complaints not substantiated and the number of notices of violations issued;
3. The number and nature of adjudications held to resolve notices of violation;
4. The average time for a complaint to be resolved; and
5. The number, nature, and outcome of any civil action commenced by the corporation counsel against employers involving violations of this chapter.
§ 20-1606 Retaliation. No person shall take any adverse action against an employee that penalizes such employee for, or is reasonably likely to deter such employee from, exercising or attempting to exercise any right protected under this chapter. Taking an adverse action includes threatening, intimidating, disciplining, discharging, demoting, suspending, or harassing an employee, reducing the hours or pay of an employee, informing another employer that an employee has engaged in activities protected by this chapter, and discriminating against the employee, including actions related to perceived immigration status or work authorization. An employee need not explicitly refer to this chapter or the rights enumerated herein to be protected from retaliation.
§ 20-1607 Notice of rights. a. The commissioner shall publish and make available notices for employers to post in the workplace or at any job site informing employees of their rights protected under this chapter. Such notices shall be made available in a downloadable format on the department’s website in accordance with the requirements for language access pursuant to chapter 11 of title 23. The commissioner shall update the notices with any changes to the minimum wage set pursuant to this chapter, and as otherwise deemed appropriate by the commissioner.
b. Every employer shall conspicuously post at any workplace or job site where any employee works and provide electronically the notices described in subdivision a of this section. The notices shall be posted in English and any language spoken as a primary language by at least 5 percent of employees if such primary language is known to the employer and the commissioner has made the notice available in that language.
§ 20-1608 Recordkeeping. a. Employers shall retain records documenting their compliance with the applicable requirements of this chapter for a period of 6 years and shall allow the department to access such records and any other information, consistent with applicable law and in accordance with rules of the department and with appropriate notice, in furtherance of an investigation conducted pursuant to this chapter.
b. An employer’s failure to maintain, retain, or produce a record or other information required to be maintained by this chapter and requested by the department in furtherance of an investigation conducted pursuant to this chapter that is relevant to a material fact alleged in a notice of violation issued pursuant to this chapter creates a rebuttable presumption that such fact is true.
§ 20-1609 Administrative enforcement. a. The commissioner shall enforce the provisions of this chapter.
b. 1. Any person alleging a violation of this chapter may file a complaint with the department within 6 years of the date the person knew or should have known of the alleged violation.
2. Upon receiving such a complaint, the department shall investigate it.
3. The department may open an investigation on its own initiative.
4. A person or entity under investigation shall, in accordance with applicable law, provide the department with information or evidence that the department requests pursuant to the investigation. The department may attempt to resolve an investigation concerning a violation of this chapter through any action authorized by chapter 64 of the charter.
5. The department shall keep the identity of any complainant confidential unless disclosure is necessary to resolve the investigation or is otherwise required by law. The department shall, to the extent practicable, notify such complainant that the department will be disclosing the complainant’s identity before such disclosure.
§ 20-1610 Remedies for employees. a. For violations of this chapter, the department may grant the following relief to employees or former employees:
1. All compensatory damages and other relief required to make the employee or former employee whole, including payment of wages withheld in violation of section 20-1602;
2. Up to 3 times the amount of wages withheld in violation of section 20-1602;
3. An order directing compliance with the minimum wage requirement set forth in section 20-1602;
4. An order directing compliance with the notice and recordkeeping requirements set forth in sections 20-1607 and 20-1608; and
5. For each violation of section 20-1606:
(a) An order requiring rescission of any discipline issued;
(b) An order requiring reinstatement of any employee terminated; and
(c) An order requiring payment of back pay for any loss of pay or benefits resulting from discipline or other action taken in violation of section 20-1606.
b. Each payment to an employee of less than the minimum wage required under this chapter shall constitute a separate violation.
§ 20-1611 Civil penalties. a. For each violation of this chapter, an employer is liable for a penalty of $500 for the first violation and, for subsequent violations that occur within 6 years of any previous violation of this chapter, up to $750 for the second violation, and up to $1,000 for each succeeding violation.
§ 20-1612 Enforcement by the corporation counsel. The corporation counsel or such other persons designated by the corporation counsel on behalf of the department may initiate in any court of competent jurisdiction any action or proceeding that may be appropriate or necessary for correction of any violation issued pursuant to section 20-1609 to 20-1611, including actions to secure permanent injunctions, enjoining any acts or practices that constitute such violation, mandating compliance with provisions of this chapter, or such other relief as may be appropriate.
§ 20-1613 Private cause of action. a. Claims. Any person alleging a violation of the following provisions of this chapter may bring a civil action, in accordance with applicable law, in any court of competent jurisdiction:
1. Section 20-1602; and
2. Section 20-1606.
b. Remedies. Such court may order compensatory, injunctive, and declaratory relief, including the following remedies for violations of this chapter:
1. All compensatory damages and other relief required to make the employee or former employee whole, including payment of wages withheld in violation of section 20-1602;
2. Up to 3 times the amount of wages withheld in violation of section 20-1602;
3. An order directing compliance with the minimum wage requirement set forth in section 20-1602;
4. An order directing compliance with the notice and recordkeeping requirements set forth in section 20-1607 and 20-1608;
5. For each violation of section 20-1606;
(a) An order requiring rescission of any discipline issued;
(b) An order requiring reinstatement of any employee terminated; and
(c) An order requiring payment of back pay for any loss of pay or benefits resulting from discipline or other action taken in violation of section 20-1606;
6. Reasonable attorney’s fees.
c. Statute of limitations. A civil action under this section shall be commenced within 6 years of the date the person knew or should have known of the alleged violation.
d. Relationship to department action. 1. Any person filing a civil action shall simultaneously serve notice of such action and a copy of the complaint upon the department. Failure to so serve a notice does not adversely affect any cause of action.
2. An employee need not file a complaint with the department pursuant to subdivision b of section 20-1609 before bringing a civil action; however, no person shall file a civil action after filing a complaint with the department unless such complaint has been withdrawn or dismissed without prejudice to further action.
3. No person shall file a complaint with the department after filing a civil action unless such action has been withdrawn or dismissed without prejudice to further action.
4. The commencement or pendency of a civil action by an employee does not preclude the department from investigating the employer or commencing, prosecuting, or settling a case against the employer based on some or all of the same violations.
§ 20-1614 Civil action by corporation counsel for pattern or practice of violations. a. 1. Where reasonable cause exists to believe that an employer is engaged in a pattern or practice of violations of this chapter, the corporation counsel may commence a civil action on behalf of the city in a court of competent jurisdiction.
2. The corporation counsel shall commence such action by filing a complaint setting forth facts relating to such pattern or practice and requesting relief, which may include injunctive relief, relief for employees set forth in section 20-1610, civil penalties set forth in 20-1611, and any other appropriate relief.
3. Such action may be commenced only by the corporation counsel or such other persons designated by the corporation counsel.
4. Nothing in this section prohibits (i) the department from exercising its authority under sections 20-1609 through 20-1611, or (ii) a person alleging a violation of this chapter from filing a complaint pursuant to section 20-1609 or a civil action pursuant to section 20-1613 based on the same facts pertaining to such pattern or practice, provided that a civil action pursuant to this section shall not previously have been commenced.
b. The corporation counsel may initiate any investigation to ascertain such facts as may be necessary for the commencement of a civil action pursuant to subdivision a of this section, and in connection therewith shall have the power to issue subpoenas to compel the attendance of witnesses and the production of documents, to administer oaths and to examine such persons as are deemed necessary.
c. In any civil action commenced pursuant to subdivision a of this section, the trier of fact may impose a civil penalty of not more than $15,000 for a finding that an employer has engaged in a pattern or practice of violations of this chapter. Any civil penalty recovered shall be paid into the general fund of the city.
§ 2. Title 20 of the administrative code of the city of New York is amended by adding a new chapter 17 to read as follows:
CHAPTER 17
MINIMUM PAY STANDARDS FOR FREELANCE WORKERS
§ 20-1701 Definitions. For purposes of this section, the following terms have the following meanings:
Digital labor platform. The term “digital labor platform” means any business that connects users of an app-based or web-based platform to services provided by workers that retains the unilateral authority to set or significantly influence the terms of compensation, the allocation or assignment of work, and the performance standards for those workers.
Freelance worker. The term “freelance worker” means any natural person or any organization composed of no more than 1 natural person, whether or not incorporated or employing a trade name that is hired or retained as an independent contractor by a hiring party or directed by a digital labor platform to provide services in exchange for compensation.
Hiring party. The term “hiring party” means any person who retains a freelance worker to provide any service, but does not include the end user of a digital labor platform.
Qualifying benefits. The term “qualifying benefits” means benefits paid for by a hiring party or digital labor platform and provided to a freelance worker, including health insurance and other supplemental benefits such as flexible spending accounts, commuter benefits, and life insurance, of a dollar valuation determined by the commissioner.
§ 20-1702 Minimum pay standard. a. Every hiring party and digital labor platform shall pay freelance workers who receive qualifying benefits no less than a minimum pay standard equivalent to $25 per hour.
b. Every hiring party and digital labor platform shall pay freelance workers who do not receive qualifying benefits no less than a minimum pay standard equivalent to $30 per hour.
c. The department shall promulgate rules defining the valuation of qualifying benefits for purposes of determining the applicable minimum pay standard pursuant to subdivisions a and b of this section. Each year the commissioner shall analyze and revise the valuation of qualifying benefits as needed.
§ 20-1703 Department rules. a. The commissioner may by rule establish methods to determine how the minimum pay standard is effectuated by hiring parties and digital labor platforms that reflect differing models of work across industries or account for the distribution of work by a single worker among multiple hiring parties or digital labor platforms, so long as any method established results in a minimum payment on a per-hour basis that is equivalent to or greater than the applicable minimum pay standard established in section 20-1702.
b. Any rule promulgated by the department pursuant to subdivision a shall not prevent payments to freelance workers from being calculated by a hiring party or digital labor platform on an hourly or weekly basis, provided that the actual payments made to such workers comply with the applicable minimum pay standard pursuant to section 20-1702.
§ 20-1704 Annual minimum pay standard adjustment. a. No later than September 1 of each year the commissioner shall conduct an analysis to determine the amount by which the minimum pay standard should be adjusted for the following year. The adjustment shall be determined by increasing the then existing minimum pay standard by the rate of change in the average of the 3 most recent consecutive 12-month periods between August 1 and July 31, each over their preceding 12-month periods, published by the United States department of labor in the non-seasonally adjusted consumer price index for northeast region or any successor index as calculated by the United States department of labor.
b. Any adjustment to the minimum pay standard determined by the commissioner pursuant to the annual analysis required in subdivision a of this section shall become effective on January 1 of the following year.
§ 20-1705 Reporting. No later than 1 year after the promulgation of rules pursuant to section 20-1703 the department shall submit to the speaker of the council and the mayor, and post on its website, a report on the implementation of the minimum pay standard, any industry-specific methods established by the department for the effectuation of the minimum pay standard, the effect of the minimum payment standard on compensation and demand for freelance workers, and the economic impacts on hiring parties and digital labor platforms.
§ 20-1706 Existing minimum pay standards. Nothing in this chapter shall be interpreted to prohibit the department from continuing any payment standard for freelance workers established by local law or rule prior to the effective date of the local law that added this section, provided that such existing payment standards result in compensation for freelance workers that is in compliance with the minimum pay standard established in section 20-1702.
§ 20-1707 Outreach and education. The commissioner shall conduct outreach and education about the provisions of this chapter. Such outreach and education shall be provided in a form to be determined by the commissioner to freelance workers, hiring parties, digital labor platforms and members of the public who are likely to be affected by this law.
§ 20-1708 Reporting. The commissioner shall provide annually to the mayor, the speaker of the council and post on the department’s website a report on the enforcement activities undertaken by the department pursuant to this chapter. The report shall include the following information, at minimum:
1. The number and nature of the complaints received;
2. The results of all investigations undertaken, including the number of complaints not substantiated and the number of notices of violations issued;
3. The number and nature of adjudications held to resolve notices of violation issued;
4. The average time for a complaint to be resolved; and
5. The number, nature, and outcomes of civil actions commenced by the corporation counsel against hiring parties involving violations under this chapter.
§ 20-1709 Retaliation. No person shall take any adverse action against a freelance worker that penalizes such freelance worker for, or is reasonably likely to deter such freelance worker from, exercising or attempting to exercise any right protected under this chapter. Taking an adverse action includes threatening, intimidating, disciplining, or harassing a freelance worker, reducing the hours or pay of a freelance worker, informing another hiring party or digital labor platform that a freelance worker has engaged in activities protected by this chapter, and discriminating against the freelance worker, including actions related to perceived immigration status or work authorization. A freelance worker need not explicitly refer to this chapter or the rights enumerated herein to be protected from retaliation.
§ 20-1710 Notice of rights. a. The commissioner shall publish and make available notices informing freelance workers of their rights protected under this chapter. Such notices shall be made available in a downloadable format on the department’s website in accordance with the requirements for language access pursuant to chapter 11 of title 23. The commissioner shall update the notices with any changes to the minimum pay standard set pursuant to this chapter, and as otherwise deemed appropriate by the commissioner.
b. Every hiring party and digital labor platform shall provide any freelance worker platformed or retained with the notices described in subdivision a of this section. The notices shall be in English and any other language spoken as a primary language by the freelance worker if known to the hiring party or digital labor platforms and the commissioner has made the notice available in that language.
§ 20-1711 Recordkeeping. a. Hiring parties and digital labor platforms shall retain records documenting their compliance with the applicable requirements of this chapter for a period of 6 years and shall allow the department to access such records and other information, consistent with applicable law and in accordance with rules of the department and with appropriate notice, in furtherance of an investigation conducted pursuant to this chapter.
b. A hiring party or digital labor platform’s failure to maintain, retain, or produce a record or other information required to be maintained by this chapter and requested by the department in furtherance of an investigation conducted pursuant to this chapter that is relevant to a material fact alleged by the department in a notice of violation issued pursuant to this chapter creates a rebuttable presumption that such fact is true.
§ 20-1712 Administrative enforcement. a. The commissioner shall enforce the provisions of this chapter.
b. 1. Any person alleging a violation of this chapter may file a complaint with the department within 6 years of the date the person knew or should have known of the alleged violation.
2. Upon receiving such a complaint, the department shall investigate it.
3. The department may open an investigation on its own initiative.
4. A person or entity under investigation shall, in accordance with applicable law, provide the department with information or evidence that the department requests pursuant to the investigation. The department may attempt to resolve an investigation concerning a violation of this chapter through any action authorized by chapter 64 of the charter.
5. The department shall keep the identity of any complainant confidential unless disclosure is necessary to resolve the investigation or is otherwise required by law. The department shall, to the extent practicable, notify such complainant that the department will be disclosing the complainant’s identity before such disclosure.
§ 20-1713 Remedies for freelance workers. a. For violations of this chapter, the department may grant the following relief to freelance workers or former freelance workers:
1. All compensatory damages and other relief required to make the freelance worker or former freelance worker whole, including pay withheld in violation of section 20-1702;
2. Up to 3 times the amount of pay withheld in violation of section 20-1702;
3. An order directing compliance with the minimum pay standard requirement set forth in section 20-1702;
4. An order directing compliance with the notice and recordkeeping requirements set forth in sections 20-1710 and 20-1711; and
5. Payment of back pay for any loss of pay or benefits resulting from an action taken in violation of section 20-1709.
b. Each payment to a freelance worker of less than the minimum payment required under this chapter shall constitute a separate violation.
§ 20-1714 Civil penalties. For each violation of this chapter, a hiring party or digital labor platform is liable for a penalty of $500 for the first violation and, for subsequent violations that occur within 6 years of any previous violation of this chapter, up to $750 for the second violation, and up to $1,000 for each succeeding violation.
b. Each payment to any freelance worker of less than the minimum payment required under this chapter shall constitute a separate violation.
§ 20-1715 Enforcement by the corporation counsel. The corporation counsel or such other persons designated by the corporation counsel on behalf of the department may initiate in any court of competent jurisdiction any action or proceeding that may be appropriate or necessary for correction of any violation issued pursuant to section 20-1712 to 20-1714, including actions to secure permanent injunctions, enjoining any acts or practices that constitute such violation, mandating compliance with provisions of this chapter, or such other relief as may be appropriate.
§ 20-1716 Private cause of action. a. Claims. Any person alleging a violation of the following provisions of this chapter may bring a civil action, in accordance with applicable law, in any court of competent jurisdiction:
1. Section 20-1702; and
2. Section 20-1709.
b. Remedies. Such court may order compensatory, injunctive, and declaratory relief, including the following remedies for violations of this chapter:
1. All compensatory damages and any other relief required to make the freelance worker or former freelance worker whole, including pay withheld in violation of section 20-1702;
2. Up to 3 times the amount of pay withheld in violation of section 20-1702;
3. An order directing compliance with the minimum pay standard requirement set forth in section 20-1702;
4. An order directing compliance with the notice and recordkeeping requirements set forth in section 20-1710 and 20-1711;
5. Payment of back pay for any loss of pay or benefits resulting from an action taken in violation of section 20-1609; and
6. Reasonable attorney’s fees.
c. Statute of limitations. A civil action under this section shall be commenced within 6 years of the date the person knew or should have known of the alleged violation.
d. Relationship to department action. 1. Any person filing a civil action shall simultaneously serve notice of such action and a copy of the complaint upon the department. Failure to so serve a notice does not adversely affect any cause of action.
2. A freelance worker need not file a complaint with the department pursuant to subdivision b of section 20-1712 before bringing a civil action; however, no person shall file a civil action after filing a complaint with the department unless such complaint has been withdrawn or dismissed without prejudice to further action.
3. No person shall file a complaint with the department after filing a civil action unless such action has been withdrawn or dismissed without prejudice to further action.
4. The commencement or pendency of a civil action by a freelance worker does not preclude the department from investigating the hiring party or commencing, prosecuting, or settling a case against the hiring party based on some or all of the same violations.
§ 20-1717 Civil action by corporation counsel for pattern or practice of violations. a. 1. Where reasonable cause exists to believe that a hiring party or digital labor platform is engaged in a pattern or practice of violations of this chapter, the corporation counsel may commence a civil action on behalf of the city in a court of competent jurisdiction.
2. The corporation counsel shall commence such action by filing a complaint setting forth facts relating to such pattern or practice and requesting relief, which may include injunctive relief, relief for freelance workers set forth in section 20-1713, civil penalties set forth in 20-1714, and any other appropriate relief.
3. Such action may be commenced only by the corporation counsel or such other persons designated by the corporation counsel.
4. Nothing in this section prohibits (i) the department from exercising its authority under sections 20-1712 through 20-1714, or (ii) a person alleging a violation of this chapter from filing a complaint pursuant to section 20-1712 or a civil action pursuant to section 20-1716 based on the same facts pertaining to such pattern or practice, provided that a civil action pursuant to this section shall not previously have been commenced.
b. The corporation counsel may initiate any investigation to ascertain such facts as may be necessary for the commencement of a civil action pursuant to subdivision a of this section, and in connection therewith shall have the power to issue subpoenas to compel the attendance of witnesses and the production of documents, to administer oaths and to examine such persons as are deemed necessary.
c. In any civil action commenced pursuant to subdivision a of this section, the trier of fact may impose a civil penalty of not more than $15,000 for a finding that a hiring party or digital labor platform has engaged in a pattern or practice of violations of this chapter. Any civil penalty recovered shall be paid into the general fund of the city.
§ 3. Section 1-105 of the administrative code of the city of New York shall not apply to the minimum wage and minimum payment standards established in sections one and two of this local law, which shall not be deemed severable.
§ 4. This local law takes effect 180 days after it becomes law.
REC
LS #5297/15605/19903/19926
12/15/2025 10:19 AM