New York Democrats Call for Minimum Wage Increase

Opposition from businesses has not dissuaded state lawmakers from working to raise New York's minimum wage.

March 06, 2013

ALBANY - New York Democrats continue to call for an increase in the state€™s minimum wage, despite strong opposition from retailers and the governor€™s own idea to hold off until after the budget is finalized, the Legislative Gazette reports.

During his State of the Union address, President Obama talked of raising the federal starting wage to $9 per hour, with future advances indexed to inflation. Currently, New York€™s minimum wage is the same as the federal starting wage: $7.25 per hour. Gov. Andrew Cuomo wants a 20% bump to $8.75 per hour, but stopped short of tying it to inflation for future raises.

If New York does raise the minimum wage to $8.75, close to 1.6 million workers would get a pay raise, according to a Fiscal Policy Institute and National Employment Law Project study. "New York's minimum wage is decades out of date at this point, and our state has suffered for it," said James Parrott, deputy director at the Fiscal Policy Institute.

Retailers are speaking out against a minimum wage hike at this time, especially as businesses are struggling. "Small businesses are treading water, unable to grow in current economic conditions," said Jim Calvin, president of New York Association of Convenience Stores. "Without sales growth, you can't increase wages. If the state says you must pay your employees more regardless, then your only choices are fewer employees or higher prices, either of which hurts the economy."

This year, 10 states saw their minimum wages go up: Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont and Washington.

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