Some hourly workers in New York state received a pay raise at the start of the year as part of a three-part increase in state minimum wage. The first increase took place in 2013.

 

The boost in wages comes as a result of the General Industry Minimum Wage Act, which ensures all domestic workers are being paid the correct amount to cover the cost of living. The act is also facilitating minimum wage increases in at least 23 other states, including Connecticut, Delaware, Michigan and Massachusetts. Some of these increases began at the start of the new year, while others will be staggered over the next 12 months.

 

The minimum wage is planned to once again increase on Dec. 31, 2015, from $8.75 to $9.

 

The New York minimum wage is enforced and regulated by the New York Commissioner of Labor. Failure of employers to abide by the increase could result in payment of back wages, civil penalties or criminal prosecution.

Jerry Evensky, an economics professor at Syracuse University, said he sees the new minimum wage having a positive effect on the New York economy.

“The impact on the New York economy will be good because people who make minimum wage will have more disposable income,” he said.

As to how business owners will be affected depends on the competition for that particular business, Evensky said. The more pressing question is whether or not consumers will quit buying after the change in prices that could possibly follow the wage increase, he said.

Amanda Thomas, manager and barista at Café Kubal, said she sees a higher minimum wage possibly having negative affects on some businesses, but not Café Kubal.

“Some smaller businesses might be at risk, just because payroll is one of the hardest things for local businesses,” Thomas said. “But I think Café Kubal will be totally fine and still committed to 100 percent service. I believe we’re in a good enough place that we can continue to maintain and continue to grow.”

As someone who has worked minimum wage jobs, Thomas said she thinks the increase in pay will be great. Having a living minimum wage is something people have a right to, she said.

The younger crowd is expected to benefit most from the increase in minimum wage. According to the Bureau of Labor Statistics, 50.4 percent of the 3.3 million people working at or below minimum wage in 2013 were between the ages of 16 and 24. Additionally, women are expected to benefit more than men. In 2013, 62 percent of those 3.3 million minimum wage workers were female.

Emily Washburn, a freshman public relations major who hails from Syracuse and works at Kelley’s Bar & Restaurant, said she believes a higher minimum wage is not only helpful, but also necessary.

“You can’t survive here if you don’t raise the minimum wage,” Washburn said. “If the cost of living is increasing, you also have to increase the minimum wage.”

Washburn said she believed she was being paid enough back in high school, but now that she’s in college, she’s not so sure.

“In high school, I didn’t really need the money. It was just nice to have. But now, there’s no way it would be enough,” Washburn said. “There’s no way I could pay for school with what I was making. Plus, with New York taxes, it makes it even harder.”

Evensky said she agrees with Washburn in that regard.

“People who work 40 hours a week shouldn’t live in poverty,” Evensky said. “The downside of lost jobs is not remotely significant to the upside of improvement in people’s lives.”

 

Published on January 13, 2015 at 1:22 am

Contact Brigid: brkenned@syr.edu