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Albany, NY - New York Reaches Deal To Raise Minimum Wage To $15 An Hour

Published on: April 1, 2016 09:02 AM
By: Reuters
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FILE - People celebrate the passage of the minimum wage for fast-food workers by the New York State Fast Food Wage Board during a rally in New York July 22, 2015.  ReutersFILE - People celebrate the passage of the minimum wage for fast-food workers by the New York State Fast Food Wage Board during a rally in New York July 22, 2015.  Reuters

Albany, NY - Governor Andrew Cuomo and state legislative leaders reached a deal on Thursday to raise New York state’s minimum wage towards $15 per hour, but fell short of a uniform state-wide increase.

The deal outlines a faster rise in New York City, but carves out a slow lane for small businesses and surrounding counties. In less prosperous areas north of the city it rises to $12.50 per hour before a state review of the law’s impact.

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The minimum wage agreement was part of a broad budget deal that Cuomo announced late on Thursday. He said the plan included 12 weeks of paid family leave and $4.2 billion in tax cuts. The $147 billion budget caps spending growth at 2 percent.

“I believe that this is the best plan the state has produced in decades,” Cuomo told a news conference in the state capital, Albany. Cuomo has earmarked $100 billion in infrastructure spending in the state.

The budget also increases school funding by 6.5 percent to $24.8 billion and freezes tuition at the state university system, SUNY.

The minimum wage has been a controversial element in difficult budget negotiations that threatened to delay the spending plan past the start of the state’s fiscal year on April 1. The agreement, including the minimum wage, still needs to get approval from lawmakers.

Under the terms of the deal the minimum wage would rise from its current $9 per hour to $15 over three years in New York City starting on Dec. 31, 2016. City businesses with up to 10 employees would be given four years to implement the measure.

Long Island and Westchester County around New York City would be given six years to push through the increases while the rest of the state would see the minimum wage rise to $12.50 in five years, with indexed increases to $15 possible after review.

There is also a provision to suspend the increases from 2019 if economic conditions worsen.

The compromise is a climb down for Cuomo and his fellow Democrats who had pushed for a $15 state-wide minimum and no carve outs for small businesses. Republicans argued that a flat statewide rate could hurt businesses in less wealthy areas.

“It may not go to $15. There’s no guarantee, that’s the good thing,” said Senator George Amedore, a Republican representing a constituency upstate, who commented on the agreement to Reuters.

Phil Steck, a Democratic Party assembly member, who represents a district 165 miles (265 km) north of the city, argued that the opposite was true, and a lower minimum wage would be a blow to the upstate economy.

“We have a very strapped economy in upstate New York and the surest way to ensure continued poverty is to run a low wage economy,” he said. “If anything, the poorer areas of the state needed an increase in the minimum wage more.”

The multi-tier solution could also dampen the national drive for a $15 minimum wage that has gathered pace as Democrats mobilize their base ahead of the presidential election in November.

They hailed an important victory when California Governor Jerry Brown and legislators reached an agreement on Monday to raise the state’s minimum wage to $15 an hour by 2023.

Cuomo said New York’s “calibrated” path to raising the minimum wage could be an example for the rest of the county. “It is raising the minimum wage in a way that is responsible and a positive for the overall economy,” he said.



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Read Comments (11)  —  Post Yours »

2

 Apr 01, 2016 at 09:23 AM short Says:

Walmart a few months ago raised all its workers minimum wages to $15.
Result was that shortly thereafter they had to layoff or cut the hours of thousands of workers.
A great victory for the workers!

3

 Apr 01, 2016 at 09:37 AM Nobody Says:

Apparently unemployment is too low in New York, and they want to make it higher.

Or they just want to give more jobs to illegal aliens.

4

 Apr 01, 2016 at 11:01 AM Aron1 Says:

Great. $15 an hour for those lucky enough to keep their jobs. The rest will collect unemployment & welfare.

5

 Apr 01, 2016 at 11:46 AM BuckyinWisconsin Says:

What, and 15$ and hour will get you a house in Willy or BP? You are delusional if you think so. All this will do is hurt the lowest wage earners by businesses not hiring or laying off workers. And BTW, a $175,000 salary will not get you a house in BP or Willy either. You may get a house in New Jersey. BTW, $175,000 is barely a family sustaining wage for the average person living in New York city with a family, if you send your children to Jewish schools. You are so off the mark.

6

 Apr 01, 2016 at 11:47 AM Anonymous Says:

Oh, I see the "Tikkun Olam " reference...Feel The Bern! Socialism is not the way.

7

 Apr 01, 2016 at 12:35 PM Anonymous Says:

As soon as this wage increase goes into effect, all products will go up in price too, so what's gained here? I'm in the food industry, I will raise prices accordingly

8

 Apr 01, 2016 at 01:26 PM Anonymous Says:

Awesome, now I could afford that summer home I always wanted.

9

 Apr 01, 2016 at 01:35 PM LEFT is a mental disorder Says:

Anyone in NY who is for this better be ready to fork out major additional dollars for goods and services. The socialist left, those leading this charge, as is always the case, have ZERO clue about anything pertaining to real life economics. They think the stores will actually absorb these additional expenses. THEY ARE CRAZY AND DELIRIOUS! Why would the stores swallow this additional expense?


As long as we're on the subject of minimum wage, why stop at $15? What about $20, 25, 30, or even FIFTY DOLLARS???? Who picked $15, such a loooooow number?

10

 Apr 02, 2016 at 10:37 PM Anonymous Says:

Reply to #7  
Anonymous Says:

As soon as this wage increase goes into effect, all products will go up in price too, so what's gained here? I'm in the food industry, I will raise prices accordingly

Well if you raise prices accordingly we will just find alternate cheaper methods. Maybe we will stock up in NJ or purchase more on-line. Or people will buy cheaper products. So you may be forced to only raise prices a bit but not accordingly. LIke this we all share the burden. The store owner and customer will pay these low wage workers somewhat fair salaries.

11

 Apr 02, 2016 at 10:39 PM Anonymous Says:

Reply to #6  
Anonymous Says:

Oh, I see the "Tikkun Olam " reference...Feel The Bern! Socialism is not the way.

Why is it socialism if these guys are working? This is not free handouts. What I'd like to see is a higher minimum wage but the food stamp income limit remain the same. This way less people are dependent on government programs. I think its a pipe dream. But its a shame because that's how the system should be.

12

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