SYRACUSE, N.Y. (NCC News) – The minimum wage increase in New York this month may be seen as great news for employees but for employers, well, not so much.
This is the first minimum wage increase in New York since 2016. On Dec. 31, the minimum wage in NewYork State will increase 7.5%, from $13.20 per hour to $14.20. The hike means an extra $40 a week for someone working full time in a minimum wage job in Central New York. Annual increases are determined by the state Division of Budget each year and are based on economic indicator including the Consumer Price Index, which measures inflation.
Pardon employers if the news is not exactly Christmas cheer.
“It really impacts us a lot,” said Stein Chen, a Syracuse restaurant ‘Taste of Asia’ owner. “And then approaching $15 an hour, it’s killing small businesses.”
For many local small business owners like Chen, it will cost more for them to hire a part time worker. And the extra $40 a week per employee means a business owner may have to pony up more than $200 a week in the salary budgets.
“They could increase those big businesses, but we are working on very marginal profit,” Chen said.
For large businesses mlike Walmart, Amazon, even the upcoming Micron, small changes in minimum wages has less of an effect. Many local businesses, on the other hand, may shut down.
“That’s why you see a lot of businesses, a lot of restaurants, a lot of old business that’s been around for 34 years, are closing their doors,” Chen said. “They can’t afford to do.”
Chen said because inflation can rise so rapidly minimum wage hikes don’t actually help people as it is believed.
“Because all these prices go up minimum wage goes up and costs for supplies goes up, as well. So really, even though you look good because your paychecks are bigger, you can actually buy fewer things with it.” Chen said.
According to Chen, the increase in minimum wage will not only affect his restaurant business, but all small businesses around Central New York.
“Most of my friends are also business owners, from all different industries, not just the food industry. Everybody faces the same issues.” Chen said.
But minimum wage workers see it differently. Jessical Liu, a part time worker but also a Syracuse University student said the hike will give her have more extra money improve the lives of so many others as well.
“It will improve my life, because I’ll get to indulge in my enjoyment more,” Liu said. “I also understand that it would improve the lives of millions of New Yorkers who are not as privileged (Liu’s family pays her tuition) as I am to be in this position.
“Obviously not everybody has the privilege to just be able to buy things that they want rather than things that they need,” Liu said. “I find myself extremely lucky, extremely fortunate to be able to have enough money and support to say like, oh, I want new makeup. I want that I can buy that. “
For workers in New York City, Long Island and Westchester County, the minimum wage will remain the same—$15 per hour. More information of minimum wage adjustments can be found at nygov.com; also the history of minimum wage can be found on the Department of Labour website (dol.ny.com).
