New York state leaders have moved ahead with minimum-wage increases over objections from some groups who said businesses battered by the coronavirus pandemic couldn't afford the increased labor costs.
New York is gradually raising its minimum wage to $15 an hour, and as of Dec. 31 employers on Long Island and in Westchester County were required to start paying workers at least $14 an hour, up from $13. The minimum rose to $12.50 from $11.80 an hour in the rest of New York state outside New York City, where all employers hit the $15 hourly wage requirement at the end of last year.
State law requires the New York Division of the Budget to analyze the impact of recent minimum-wage increases and the health of the economy before the state moves forward with scheduled increases. A 2016 law, which raises the minimum wage over several years to $15 an hour, is scheduled to reach the threshold in Long Island and Westchester next year.
Roberta Reardon, commissioner of the New York State Department of Labor, had the option of delaying the wage boost but said the labor markets affected by the increase -- meaning those outside New York City -- are leading the state's economic recovery.
The unemployment rate for Long Island and Westchester, for example, fell to 7.1% in October from its pandemic peak of 15.4% in April, according to the report. The national unemployment rate was 6.9% in October, according to the U.S. Labor Department.
Minimum-wage workers, such as those employed in the retail, leisure and hospitality industries, have been disproportionately harmed by the pandemic and need support, Ms. Reardon said in explaining her decision to move forward with the minimum-wage increase.
"We will rebuild our economy while continuing to lead the nation in the fight for economic justice," she said in a statement. "This investment in our workers once again proves that in New York we believe a fair day's work deserves a fair day's pay."
Steve Wangel, president of the Lynbrook Chamber of Commerce on Long Island, said he supported delaying the minimum-wage increase. Mr. Wangel, who owns a kitchen cabinet and design company, isn't affected by the change because he pays his employees on commission.
"Especially now, because of coronavirus and businesses suffering such a decrease in business, it becomes much, much harder to pay the higher wages," he said.
Some business groups said the higher labor costs could slow the state's jobs recovery.
"It just increases the cost of doing business at a time when sales are at an all-time low, revenue is at an all-time low and many businesses are simply closed in New York state or operating under severe capacity restrictions," said Greg Biryla, New York director of the National Federation of Independent Business.
Elizabeth Wellington, vice president of the trucking company Wellie The Transporter, based in Elmont on Long Island, said she supported raising the minimum wage because many workers are having a hard time paying their living expenses. Ms. Wellington, who has two employees, said the wage increase won't have a significant impact on her business.
"Some people don't even have food," said Ms. Wellington, who is also deputy director of Nassau County for the Long Island African American Chamber of Commerce. "Some workers in the African-American community have to hold three jobs in order to survive."
The state budget division's report found that minimum-wage increases over the last four years didn't adversely affect employment in New York, with the statewide unemployment rate falling below 4% just before the pandemic. The statewide rate was 8.1% in November, the most recent data available, down from a high of 16% in July, according to the state labor department.
In addition to New York, 19 other states and 32 cities and counties raised their minimum wages Jan. 1, according to a report by the National Employment Law Project, a nonprofit research group that advocates for low-wage workers. The statewide new minimum wages range from $8.75 an hour in Montana to $14 an hour in California.
In New Jersey, the minimum rose to $12 an hour from $11 on Jan. 1. A law signed last year by Gov. Phil Murphy, a Democrat, will gradually increase the state's minimum wage to $15 an hour for most workers by 2024.
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