| Photo by Joe Holland on Unsplash
NEW YORK – Effective January 1, New York’s minimum wage will increase by $16 per hour in New York City, Long Island, and Westchester County and $15 per hour in the rest of the state. In addition, the minimum wage for home care aides will increase to $18.55 an hour in New York City, Westchester, and Long Island and $17.55 an hour in counties in upstate New York.
The wage increase is part of a historic multi-year plan to increase the minimum wage and index it to inflation.
Governor Kathy Hochul urged minimum wage workers who do not see the increase reflected in their paychecks to file a complaint with the Department of Labor to make sure that they get the wages they get the wages they are owed.
As part of the FY 2024 Budget, Governor Hochul secured a historic agreement to increase New York’s minimum wage through 2026 and index it to inflation beginning in 2027. After the initial increase, the minimum wage will increase by $0.50 in 2025 and 2026. In 2027, the minimum wage will increase annually at a rate determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region – the best regional measure of inflation. An “off-ramp” is available during certain economic or budget conditions.
Indexing the minimum wage to inflation will help maintain workers’ wages’ purchasing power yearly. Increasing the minimum wage overall overwhelmingly benefits low-income workers, particularly women and people of color, who comprise a disproportionate share of minimum wage workers.
“The elevation of the minimum wage serves as a lifeline for New Yorkers struggling to make ends meet as costs rise,” New York State Department of Labor Commissioner Roberta Reardon said. “Steady, multi-year changes allow businesses time to adjust while providing low-wage workers the ability to better support themselves and their families.”
Eighteen other states tie their minimum wage to inflation or some different economic formula or are slated to do so, including three states with minimum wages at or above $15 in 2023. According to the NYS Department of Labor, economic research shows that raising the minimum wage can reduce poverty, reduce social assistance and stimulative spending, improve worker productivity, and provide other benefits.
Minimum wage earners who do not see the increase reflected in their paychecks can file a wage complaint on the New York State Department of Labor’s website or by calling 833-910-4378. For more information about NYSDOL’s efforts to combat wage theft, visit the Department’s landing page.
–With Jay Domingo/PDM
