The minimum wage in New York will soon increase. Gov. Kathy Hochul and legislative leaders are committed to a three-year plan to raise the minimum wage before limiting future increases to the rate of inflation under a draft state budget recently agreement revealed.
The proposal calls for the wage in New York City, Long Island, and Westchester County to reach $17 in 2026; however, progressive legislators and groups are against the compromise. Democratic legislator Hochul said it will be incorporated into the final budget bill, which lawmakers are anticipated to pass next week.
- Advertisement -
Here is what the future holds for the minimum wage in New York.
In Westchester County, Long Island, and New York City, the minimum wage is presently $15.
According to the proposed budget agreement, that amount would rise in three years to $16 an hour on January 1, 2024, $16.50 an hour on January 1, 2025, and $17 an hour on January 1, 2026.
The remainder of the state, whose costs of living are typically lower, would trail behind by $1. This means that the present minimum wage of $14.20 per hour would rise to $15 in 2024, $15.50 in 2025, and $16 in 2026.
New York is planning to link the minimum wage to the rate of inflation, for the first time ever. In theory, this will remove the power of the governor and state legislature to raise the minimum salary in the future.
The minimum hourly wage would increase at the same rate as the Consumer Price Index for Urban Wage Earners and Clerical Workers, an index that tracks the market prices of consumer goods to account for inflation, beginning in 2027 and continuing through the following year. The cost-of-living adjustments for Social Security benefits are based on the same index.
It remained questionable if the possible budget agreement would have any provisions that would stop an automatic rise in case the economy had a big downturn. When budget legislation is printed, which is anticipated to occur over the weekend and into the first half of next week, that question is likely to be addressed.
Progressive legislators and groups as a whole don’t like the deal.
They said that raising the minimum wage to $21.25 by 2026 would better reflect the recent large increases in inflation. After that, they sought to link it to inflation.
“The true cost of living in New York—and particularly within the five boroughs—simply cannot be sustained at $17 per hour,” declared state senator Jessica Ramos, a Democrat from Queens, who was the chief supporter of a measure to increase the minimum wage. The wage that maintains working families in poverty has been effectively entrenched by this agreement.
Nevertheless, the $17 proposal will be incorporated into the overall budget agreement. The minimum wage idea would likely be incorporated into a budget package, making it far more difficult for MPs to vote against it without simultaneously voting against dozens of other policies.
Hochul initially advocated for a more gradual increase in the minimum wage by just indexing future increases to inflation. However, she asserts that she supports the compromise, which will impact 900,000 workers statewide.
Hochul noted that this commitment will act as a safety measurement in protecting workers from being exploited, “This will be a lifeline for them and protects them from labor exploitation and gives them a measure of security that they’ve not had until now.”
