Business Owners Welcome Jan. 1st New York Minimum Wage Increases

On Jan. 1, New York’s minimum wage will increase to $16 in New York City, Long Island and Westchester County, and $15 for the rest of the state as the first step under New York’s minimum wage raise passed earlier this year. Business owners across New York are welcoming the minimum wage increases, saying they will boost consumer spending and bolster New York businesses.

New York’s minimum wage will continue to increase by 50 cents a year for the next two years, until it reaches $17 in New York City, Westchester County, and Long Island, and $16 upstate by 2026. Starting in 2027, the minimum wage will be indexed annually, but unfortunately, there is a counterproductive “off-ramp” provision that suspends cost of living adjustments when unemployment goes up. In reality, raising the minimum wage is a powerful way to boost the economy during downturns because it puts money in the pockets of people who most need to spend it.

The New York Business for a Fair Minimum Wage Coalition, made up of more than 300 businesses and business organizations across New York, advocated for an even more robust incremental minimum wage increase to $21.25 by 2026/2027 plus indexing as part of the 2023 Raise the Wage Act to restore the eroded value of the minimum wage and keep up with the cost of living in future years.