New Minimum Wage to Benefit Hundreds of Thousands of Low-Wage Workers
Governor Kathy Hochul announced a historic agreement this week to increase New York State’s minimum wage and tie it to inflation. The agreement, which is part of the FY 2024 budget, will benefit hundreds of thousands of low-wage workers across the state.
The minimum wage will increase to $16 in New York City, Long Island, and Westchester, and to $15 elsewhere in the state, starting in 2024. The minimum wage will then increase by $0.50 each year in 2025 and 2026. After 2026, the minimum wage will be indexed to inflation. This means that it will automatically increase each year based on the Consumer Price Index.
The new minimum wage will help low-wage workers keep up with the rising cost of living and improve their financial security. It will also stimulate the economy by increasing consumer spending.
Eighteen other states either currently tie their minimum wage to inflation or are slated to do so. Economic research shows that raising the minimum wage can lead to reductions in poverty, reduced social assistance spending, stimulative spending, improved worker productivity, and other benefits.
Governor Hochul said that the agreement was “a historic victory for working families across New York.” She said that it would “help to ensure that everyone who works hard can make a decent living.”
The agreement was praised by labor unions and other advocates for low-wage workers. They said that it was a major step forward in the fight for economic justice.
Business groups expressed some concerns about the impact of the increased minimum wage, but they said that they were committed to working with the state to implement the agreement in a way that minimizes disruption.
The agreement is a major victory for working families in New York State. It will help to ensure that everyone who works hard can make a decent living.