A proposal is on the table that would see a massive increase in New York State’s minimum wage. It’s $15.00 an hour now, and some Democrats want to see it hit $21.25 by 2026, and tie further increases to inflation.
That’s almost a 30% increase.
To be clear, that’s just an idea from a few progressive Democrats, in particular state Sen. Jessica Ramos (D-Queens) and Assemblymember Latoya Joyner (D-Bronx). The Ramos-Joyner proposal would benefit 2.9 million low-wage workers; that’s about 32% of the state’s workforce.
“We are talking about folks who do all sorts of important service work, but only make the minimum wage,” Ramos said. “And it is why it’s so important that we allow these workers to make enough to keep a roof over their heads and put food on the table for their families.”
Pretty much all Democrats want to see the following: first, the minimum wage rise and second, increases tied to inflation–but the debate is over a simple question: to what degree?
Under Governor Kathy Hochul’s plan, the minimum wage would rise modestly to $16.40 downstate by 2026. The minimum wage would be tied to the rate of inflation but hit a maximum increase of 3% in any one year. $16.40 would mean an extra $670 a year, according to the Economic Policy Institute, a left-leaning think tank based in DC. Even Hochul’s smaller plan would benefit about 1.1 million low-wage workers, according to the Economic Policy Institute. The Ramos-Joyner proposal would benefit 2.9 million low-wage workers or about 32% of the state’s workforce.
Hochul knows her plan isn’t the only one out there.
“These are all on the table. We’re talking about minimum wage at the table and having a lot of good conversation about how we can increase affordability for New Yorkers,” the governor said.
New York’s previous $15 standard has since been surpassed. Washington state’s minimum hourly wage is $15.74, while California’s is $15.50.
Other cities that peg their minimum wage to inflation–a common practice in cities and countries around the world–have gone even higher: Seattle’s is $18.69 an hour, Denver’s $17.29, Washington DC’s $16.10, LA’s $16.04.
But raising the minimum wage is also prompting some concerns that with higher salaries, low-income families could lose public benefits. Small business owners are also concerned about the impact it could have on them, too.
But Democrats say that raising the minimum wage is a crucial anti-poverty measure, and there are numbers to back this up: Raising the minimum wage has been shown to reduce the poverty rate and inequality, according to the Economic Policy Institute. The think tank estimates 48% of the affected workers across the state are single parents and 760,000 children live in households that would benefit from the pay raise.
Either way, this fight, and many others, will be hashed out before the April 1st state budget deadline.
