1. Workforce Development and Support
Michael Seereiter, President & CEO
New York State Rehabilitation Association

2. Agenda
How We Got Here
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
2015
January – Governor proposes in executive budget minimum wage increase $10.50/hour; $11.50/hour in NYC
March – Final budget agreement does not include minimum wage increase
May – Governor creates wage board for fast food workers

3. Agenda
How We Got Here
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
2015
September – NYS DOL accepts wage board’s recommendation to move fast food employees to $15
Estimated at impacting 28,000 NYers working in fast food
October - December – meetings with Gov’s office and DOB, ultimately unsuccessful in securing funding to allow providers of disability services to compete. Arguments for “compression” and understanding that NYS controls “the market” first rejected.

4. Agenda
How We Got Here
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
2016
January – NYC Mayor de Blasio proposes to raise all NYC employees to $15 by 2018; includes contracts with non-profit service providers

5. Statewide (excluding NYC)
Agenda
How We Got Here
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
2016
January – Governor Cuomo’s budget proposal includes proposed minimum wage increase to $15 as part of the Mario Cuomo Campaign for Economic Justice; No funding included for government funded services and supports
New York City
Statewide (excluding NYC)
Min. Wage
Effective Date
$12.00
12/31/2016
$10.75
$13.50
12/31/2017
$11.75
$15.00
12/31/2018
$12.75
$13.75
12/31/2019
$14.50
12/31/2020
7/1/2021

6. General Minimum Wage Rate Schedule
Agenda
How We Got Here
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
Budget includes Minimum Wage deal
General Minimum Wage Rate Schedule
Location
12/31/16
12/31/17
12/31/18
12/31/19
12/31/20
2021*
NYC - Big Employers (of 11 or more)
$11.00
$13.00
$15.00
NYC - Small Employers (10 or less)
$10.50
$12.00
$13.50
Long Island & Westchester
$10.00
$14.00
Greater New York State
$9.70
$10.40
$11.10
$11.80
$12.50 *

7. Final Budget Agreement Includes $ for Min Wage
Agenda
Final Budget Agreement Includes $ for Min Wage
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
These resources are ONLY to bring staff making below the new mandated minimum up to the new mandated minimum
$19M in SFY 2017; $126 SFY 2018; $255M SFY 2019; $588M SFY 2020
Included $600K for OMH funded programs; with federal match, $900K total
DOH has led effort to create consistent methodology to distribute minimum wage funding. Included extensive surveying of some sectors (e.g. DD), which has resulted in adjustments.
DOB’s mid-year budget report indicates those estimates were not accurate. Updated estimates are:
$50M SFY2017; $293M SFY 2018; $681M SFY 2019; >$1B SFY 2020

8. Current Environment Agenda
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
Decades of decline in society’s value of care and support for others; Government funding has mirrored society’s prioritization of these supports
Highly competitive environment for recruiting/retaining qualified employees
Challenging work
Increasing responsibility and liability without increased compensation
Minimal increases (except for 2% COLAs)

9. Current Environment Agenda Providers increasingly unstable
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
Providers increasingly unstable
Human Services Council Report - New York Nonprofits in the Aftermath of FEGS: A CALL TO ACTION
Oliver Wyman – Seachange Capital Partners Report – Risk Management for Nonprofits management-for-nonprofits.html#.WDR4nksrK70

10. Complexity of the Issue
Agenda
Complexity of the Issue
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
Challenges:
“Compression”
“Perception” of highly paid executives and extreme administrative costs
Providers are majority funded by public resources, and staff compensation is majority of organization budgets
“The market”
NYS has a monopsony. “In microeconomic theory of monopsony, a single entity is assumed to have market power over terms of offer to its sellers, as the only purchaser of a good or service, much in the same manner that a monopolist can influence the price for its buyers in a monopoly, in which only one seller faces many buyers.” (

11. BERMUDA TRIAGLE FOR PROVIDERS
Agenda
Current Environment
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
Control Over Price for Goods/Services
BERMUDA TRIAGLE FOR PROVIDERS
Control Over Product/Service Quantity/Duration/Quality
Control Over Personnel, Regulations, Administration

12. Consequences of Failure to Fully Fund
Agenda
Consequences of Failure to Fully Fund
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
Depending on organization/provider, trajectory to fiscal insolvency begins within >12 months
Providers will likely do everything in their power to avoid fiscal collapse
borrow against lines of credit
limit services
cease certain programs/supports
Providers become insolvent
State unlikely to find other non-profit providers to expand services to meet need
State unable to nimbly move in to provide crucial services
Individuals don’t get supports

13. Strategies Agenda Better illustrate condition of providers
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
Collaboration across associations – and sectors
Coordination of lobbying efforts
Grassroots advocacy
Call ins, letters, meetings aimed at Governor and Legislators
Rallies
Public Relations
Letters to editor
OP-EDs
TV Interviews
Press conferences
Better illustrate condition of providers
Increasing efforts to point out shaky financial position of many in field, and what peril may look like for individuals supported

14. Campaigns Agenda Minimum Wage How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption

15. Postponed – Injunction Granted
Agenda
Overtime Exemption
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
US DOL Fair Labor Standards Act regulations finalized 8/16, with effective date of 12/1/16
Impacts salaried exempt workers in managerial or professional positions who work more than 40 hours per week
Salary threshold at which workers are exempt from overtime requirements increases nationally from the current $23,660/year $47,476/year. In New York State the current threshold is $35,100/year, but will also move to $47,476/year. The threshold will be automatically increased every three years.
Outside of management decisions around restricting overtime, reducing services, and shifting pay from wage staff to salaried staff, employers can:
Raise salaries to the new threshold
Make no changes to salaries, but pay overtime.
Despite requests and lobbying to secure resources, no new resources have been allocated at the federal level.
Postponed – Injunction Granted

16. Overtime Exemption Agenda
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
NYS proposing its own set of overtime exemption rule changes that EXCEED those proposed by the federal government and which were just postponed.
DOH is working on a survey of OPWDD providers to ascertain impact. Advocacy organizations efforts to survey field generated unreliable data/results.

17. Overtime Exemption Agenda QUESTIONS:
Minimum Wage
How We Got Here
Final Budget Agreement Includes $ for Min Wage
Current Environment
Complexity of the Issue
Consequences for Failure to Fully Fund
Strategies-Campaign
Overtime Exemption
QUESTIONS:
Is the new rule likely to remain in effect after Trump administration takes office?
Will NYS continue to pursue proposed rule?