NEW YORK—About a million New Yorkers should have a little more cash in their pockets. On Jan. 1, the minimum wage increased from $9 to $11 per hour in New York City and at least $9.70 statewide.
The hike is part of Gov. Andrew Cuomo’s ongoing plan to push the minimum wage from the federally mandated $7.25 per hour to a goal of $15 per hour between 2019 and 2022.
Social advocates applaud the move, arguing any job should pay a “living wage”—one that supports food, shelter, health care, and other necessities. Yet the most impacted industries worry, as the wage hike adds to an already large pile of recent financial pressures.
Critics argue the hike will end up costing the state hundreds of thousands of jobs due to layoffs.
In general, strengthening minimum wage laws signifies an increase in government control over employers’ and employees’ ability to negotiate wages.
Cuomo Explains
Cuomo offered a two-pronged reason for the wage hike.
First, the federal minimum wage ($7.25) guarantees about $15,000 a year for a full-time employee working 8-hour days. That’s enough to clear the federal poverty threshold of $12,000 for a single worker, but not for a single parent.
And second, Cuomo said the minimum wage of $15 reasonably reflects the New York state minimum wage seen in 1970, adjusted for inflation and cost of living. It provides an income of some $30,000, which allows a single mother of four to live above the federal poverty line.
