This is the first time that a state has set a high rate for minimum wage, with New York State approving a $15 an hour minimum for fast-food workers. The formal approval was announced by Gov. Andrew Cuomo (D) while he was with Vice President Biden during a labor rally. The governor also announced that he would next work to set $15 as the standard minimum wage for every type of industry. The increase will be done gradually over a span of three years in the city of New York and six years for the rest of the state. In the same rally, the Vice President said that he and President Obama will continue to work on increasing the minimum rate for federal workers to $12 an hour.
The approved minimum wage increase in New York State will affect over 200,000 employees. In the West Coast, several cities, such as Berkeley, Oakland, San Francisco, Seattle and Los Angeles have also approved the phased-in $15 minimum wage increases.
Opposition
Although it was a victory for the workers, the implementation of the increase is not going to be smooth sailing, as challenges are expected to surface. Gov. Cuomo created an unelected Wage Board that recommended the increase. He did this to dodge the Republican-led Senate, which had obstructed big wage increases in the past. There is already a law passed in 2013 that will increase the current minimum of $8.75 to $9 at the end of this year.
Fast-food employees have rallied for this increase, arguing that the industry workers were receiving the lowest wage compared to other sectors whereas the multinational fast-food chains earning billions of dollars in profit dominate the business. The new minimum wage will affect 116 fast-food chain brands.
The franchise owners on the other hand, who said that they might challenge the mandated increase, claim that this new law will give unfair advantage to their competitors that will not be affected by the wage increase. Other franchise owners say that this might force them to raise their prices, downsize their manpower or actually force them out of business.
John Flanagan, the Republican Senate Leader, who is from Long Island said that there will be adverse effects to the wage increase, including job losses and a negative impact on many businesses that are barely making themselves afloat.
Copyright: vadimgozhda / 123RF Stock Photo
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