Preconsidered Res. No. 1670
Resolution calling upon New York State Senate to pass legislation to raise the minimum wage to $9 per hour and index future automatic increases to inflation.
By the Speaker (Council Member Quinn) and Council Members Palma, Nelson, Mealy, Weprin, Barron, Chin, Comrie, Eugene, Gentile, Gonzalez, James, Koo, Koppell, Koslowitz, Lander, Mark-Viverito, Mendez, Richards, Rose, Vann, Williams and Halloran
Whereas, Pursuant to the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees is $7.25 per hour, effective July 24, 2009, and is not indexed to inflation; and
Whereas, The New York State minimum wage is currently $7.25 per hour pursuant to the FLSA and such rate is also not indexed to inflation; and
Whereas, The Council commends Governor Cuomo for his leadership to raise the minimum wage in New York State, where during his 2013 State of the State Address, he called for the minimum wage to be raised to $8.75; and
Whereas, A number of states, including Alaska, Arizona, California, Colorado, Connecticut, Florida, Illinois, Maine, Massachusetts, Michigan, Montana, New Mexico, Nevada, Ohio, Rhode Island, Vermont, Washington, and the District of Columbia, all have minimum wage rates that are higher than the federal government rate; and
Whereas, Arizona, Colorado, Montana, Ohio, Oregon, Vermont, Florida and Washington all increased their minimum wage recently in 2012 and have cost of living adjustments written into their state laws; and
Whereas, During his 2013 State of the Union Address, President Barack Obama called upon the United States Congress to raise the minimum wage to $9 per hour by 2015, and his proposal would include future automatic increases indexed to inflation; and
Whereas, Since the State of the Union, the New York State Assembly passed on March 5, 2013 and delivered to the State Senate, A00038A, which would raise the state's minimum wage to $9 effective January 1, 2014, and beginning on January 1, 2015, it would annually be increased automatically by indexing the rate to inflation; and
Whereas, According to economic research, a higher minimum wage would potentially increase spending on locally produced goods and services by workers benefiting from such increased wages, which could produce greater demand and help stimulate the local economy; and
Whereas, Before taxes, a full time minimum wage worker in New York earning $7.25 per hour, working 40 hours a week, 52 weeks a year, will earn $58 per day, $290 per week, or $15,080 per year; and
Whereas, According to the most recent available data from the New York City Center for Economic Opportunity, the New York City poverty level for a family unit consisting of two people is $19,626 per year, and poverty in New York City has increased since 2008, with twenty-one percent of residents living at or below the poverty level; and
Whereas, Minimum wage workers would be helped by making cost of living increases automatic, by indexing future minimum wage increases to inflation, because their effective incomes would not decrease over time due to inflation, and future increases would not require legislative action;
Whereas, New York City residents in minimum wage jobs should be provided with an increased wage to better support their families and provide them with food and shelter;
Whereas, The Council praises Governor Cuomo and Assembly Speaker Silver for their efforts to increase to the minimum wage; now, therefore, be it,
Resolved, That the Council of the City of New York calls upon New York State Senate to pass legislation to raise the minimum wage to $9 per hour and index future automatic increases to inflation.
LS# 4463 3/13/13 MWC