TO:	Commissioners, Employment Coordinators, TA Directors, FS Directors, WMS Coordinators, BICS Coordinators

FROM:	Russell Sykes, Deputy Commissioner, Division of Employment & Transitional Supports

SUBJECT:	 Minimum Wage Increase and Work Experience Hours

EFFECTIVE DATE:  Immediately

CONTACT PERSON:  Welfare-To-Work Technical Advisor	

The purpose of this notice is to remind social services districts of the upcoming increase in the State’s minimum wage and related follow up activities which districts will need to complete for Welfare-To-Work (WTW) programs in order to ensure compliance with State requirements.

The Empire State Wage Act of 2004 increased the State hourly minimum wage to $6.00 per hour effective January 1, 2005 and will increase the State minimum wage to $6.75 effective January 1, 2006.  The Act also provides for an additional minimum wage increase to $7.15 effective January 1, 2007.  The federal minimum wage remains $5.15 per hour.  The increase in the minimum wage will result in additional income for some households currently receiving assistance and offer an added incentive for individuals to choose work over welfare.  The increase will also affect the number of hours a client may be required to participate in a work experience program.

Temporary Assistance Employment Requirements

Section 336-c of Social Services Law specifies that the maximum number of hours an individual may be required to participate in a temporary assistance work experience assignment is equal to the household’s temporary assistance and food stamp grant divided by the higher of the State or federal minimum wage.  As a result of the increased State minimum wage, social services districts must review the number of hours each individual is assigned to work experience (including any work experience that is part of community service) to ensure the hours do not exceed the maximum allowable under State law.  Districts should plan supplemental or alternate work activities for clients whose participation in work experience is reduced due to the minimum wage increase.

Food Stamp Employment and Training Requirements

An increase in the State’s minimum wage will not affect the number of individuals exempt from food stamp work requirements based on the exemption for individuals receiving weekly earnings equal to the federal minimum wage multiplied by 30 hours.  This provision relies on the federal minimum wage and is not affected by the State minimum wage.

Federal regulations establish that the maximum number of hours a food stamp recipient may be required to participate in a food stamp work experience program is equal to the value of the food stamp benefit divided by the higher of the State or federal minimum wage.  Therefore, social services districts must also review the number of hours food stamp work registrants are assigned to work experience to ensure the hours do not exceed the maximum allowable under state and federal law.  A food stamp recipient participating in work experience for the number of hours supported by the food stamp benefit would be compliant with eligibility-based work requirements for able-bodied adults without children (ABAWDs).

Welfare-To-Work Caseload Management System (WTWCMS) 

The Welfare-To-Work Caseload Management System (WTWCMS) will be updated to reflect the increased minimum wage so that the system generated calculation of the allowable hours for work experience included in the referral function is accurate.  Necessary changes are scheduled to be effective January 1, 2006.

To help identify the need for any reductions in hourly work experience assignments, districts (other than NYC) may generate a list of clients currently enrolled in work experience by using the WTWCMS online listing “Current Activity Enrollments” and selecting the activity name “work experience” or other needed activity.  Districts may also obtain this listing by using the Cognos “Active Adults Enrolled in Work Experience” report which may be accessed through the Cognos Upfront website.

Please contact your district’s WTW Technical Advisor with any questions.