SNAP MEMO #4 15-16’

TO: NOEP Subcontractors

FROM: Colleen Donovan, SNAP Technical Assistance Specialist

DATE: December 10th, 2015

RE: StateMinimum Wage Increase and the Impact on SNAP Recipients

______

This memo highlights information regarding the increase to the New York State (NYS) minimum wage, which will occur on December 31st, 2015, and the impact on SNAP participants. This information was provided by OTDA through 15-INF-09. Included in this memo is the following:

  • Background Information on the Minimum Wage Increase
  • Reporting Requirements and SNAP Budget Implications
  • SNAP Employment and Training Requirements
  • Work Experience Implications

Background Information on the Minimum Wage Increase

The New York State minimum wage has increased from $8.75 per hour to $9.00 per hour effective December 31st, 2015. This is the third and final installment of increases to the minimum wage rate which began on December 31st, 2013.

Reporting Requirementsand SNAP Budget Implications

All SNAP households who are simplified reporters (six month reporters) are exempt from reporting an increase in their earnings due to minimum wage, as long as the minimum wage increase does not put their income above 130% of the poverty level. The increase in earnings will need to be reported at the time of the next recertification or periodic report.

SNAP Employment and Training Requirements

An increase to the NYS minimum wage does notchange the standards for determining if a SNAP recipient is exempt from SNAP employment and training requirements. SNAP recipients are determined exempt from work requirements if they are earning the federal minimum wage($7.25) multiplied by 30 hours per week ($217.50) or more. However, with the increase in the NYS minimum wage, some SNAP cases maybe exempt from the work rules beginning in January. These households would be exempt if the change in the minimum wage increased their income to $217.50 or more per week.

Work Experience Implications

The new NYS minimum wage will be used to calculate the maximum hours that Work Experience Program (WEP) participants can be assigned. This is because the NYS minimum wage of $9.00 is higher than the Federal minimum wage of $7.25.

Work Experience participants areSNAP recipients who are required to participate in Employment and Training (E&T) activities and are obligated to follow the SNAP work rules. These SNAP households include work registrantsand TANF recipients.

Due to the increase in the state minimum wage, all individuals currently participating in Work Experience will have their cases reviewed by SNAP/HRA offices. The intent of the review is to determine the maximum hours a SNAP recipient can be assigned to work and to ensure that current SNAP recipients are not being assigned more hours than are allowed under state law. Due to this, some SNAP recipients will see a decrease in their current WEP hours. Required hours cannot exceed the value of the SNAP benefit (and cash assistance for recipients receiving both) divided by the NYS minimum wage and rounded down to the nearest whole number. At no time can assigned work hours exceed 40 hours per week.

Example:

One-person SNAP householdreceiving the maximum SNAP allotment of $194

Calculation using the old state minimum wage ($8.75 per hour):

$194 (SNAP allotment) /$8.75 = 22 monthly WEP hours (rounded down)

Calculation using the new state minimum wage ($9.00per hour):

$194 (SNAP allotment)/$9.00 = 21 monthly WEP hours (rounded down)

**For more information on work rules for SNAP applicants, see Hunger Solutions New York’s Prescreening Guide, pgs27-29, and Appendix I.

Links:

  • 15-INF-09 – 2015 State Minimum Wage Increases and Its Effect on Temporary Assistance (TA) and Supplemental Nutrition Assistance (SNAP) Programs
  • NYS Departmentof Labor – Minimum Wage and Labor Standards
  • 14-INF-15 – 2014 State Minimum Wage Increase and Its Effect on Temporary Assistance (TA) and Supplemental Nutrition Assistance (SNAP) Programs
  • 13-INF-08–2013 State Minimum Wage Increase and Its Effect on Temporary Assistance (TA) and Supplemental Nutrition Assistance (SNAP) Programs
  • Policy Bulletin #14-03-EMP (NYC Only) – 2013 Increases in the New York State Minimum Wage and Impact on the Work Experience Program Hours Calculation

If you have any questions about this memo, or any other SNAP related question, please contact Colleen Donovan by phone at (518) 436-8757 ext. 126 or via e-mail at .

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Hunger Solutions New York

NOEP SNAP Policy Memo #415-16’