NYC's Minimum Wage Will Finally Hit $15 Next Week

NEW YORK — Many New Yorkers will get a raise next week when New York City becomes the first in the state with a $15-per-hour minimum wage. That will be the new pay floor for employees of businesses with at least 11 employees starting on Dec. 31, up from the current rate of $13, according to the state Department of Labor.

The milestone will come more than two years after Gov. Andrew Cuomo signed a law to eventually establish a $15 minimum wage statewide, an accomplishment he has frequently touted.

"With the historic increase in the minimum wage, New York continues to set a national example in the fight for economic justice," Cuomo, a Democrat, said in a statement Wednesday. "In New York, we believe in a fair day's pay for a fair day's work and are proud to be stepping up for hardworking families and making a real difference in the lives of New Yorkers."

New York City will join some large West Coast cities that already have a $15 minimum wage. San Francisco's took effect this past July, while Seattle has required some large employers to pay that much since 2017.

Smaller city employers with 10 or fewer workers will have another year before the higher wage takes hold. The minimum for those firms will rise from $12 to $13.50 per hour on New Year's Eve before increasing to $15 on Dec. 31, 2019.

Workers outside the city will have to wait even longer. The $15 minimum won't hit the suburbs of Long Island and Westchester County until 2021. In every other part of the state, the wage will increase annually based on various "economic indices" after hitting $12.50 at the end of 2020, according to the state's website.

The higher pay will likely be an economic boon for many New Yorkers despite the state's drawn-out schedule. Implementing a $15-per-hour minimum in the city by 2019 would benefit nearly 1.5 million workers and boost wages by $10 billion annually, City Comptroller Scott Stringer estimated in a 2015 report.

Cuomo's administration has set up a "wage theft hotline" at 1-888-4-NYSDOL where workers can report their employers for failing to comply with the higher wage. The state will also launch an education campaign to increase awareness about the new pay rate, the governor's office said.

The $15 wage will not apply to tipped workers. Those working for large employers in New York City will see their minimum cash wage rise to $10 or $12.50 per hour depending on the industry on Dec. 31. Those employed by small firms in the city will see the minimum cash wage rise to either $9 or $11.25 an hour.

(Lead image: Photo from Shutterstock)