Minimum Wage May Increase Every Year in New York to Keep Up with Inflation
The minimum wage in New York may increase every year to keep up with inflation.
Governor Kathy Hochul wants to help New Yorkers struggling with the rising cost of living by raising the minimum wage every year. The plan is part of the 2023 State of the State.
“If we really want to tackle the affordability crisis head-on, we must recognize that low-wage workers in New York have been hit hardest by the increases in costs of living," Governor Hochul said. “Our commonsense plan to peg the minimum wage to inflation will not only put more money into the pockets of hundreds of thousands of hardworking New Yorkers, it will also provide predictability for employers and spur more spending in local economies and businesses."
The plan calls for the minimum wage in New York to increase annually at a rate determine by the Consumer Price Indes for Wage Earners in the Northeast. It is expected to benefit hundreds of thousands of workers across the state.
To make sure no single-year increase threatens employment, yearly raises would be capped.
New York would join 17 other states where the minimum wage is tied to inflation or some other economic formula. There are three states where the minimum wage is at or above $15.
Economic research shows that raising the minimum wage can lead to reductions in poverty, reduced social assistance spending, stimulative spending, improved worker productivity, and other benefits.
The minimum wage proposal is great news for New Yorkers who can barely make a living. But what about the business owners who are struggling too? How will they afford paying higher wages each year?