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New York’s minimum wage downstate will increase to $17 in budget deal
By
Jon Campbell
Published Apr 28, 2023
Modified Apr 28, 2023
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By
Jon Campbell
Published Apr 28, 2023
Modified Apr 28, 2023
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New York’s minimum wage is about to go up.
Under a tentative state budget deal announced on Thursday, Gov. Kathy Hochul and legislative leaders have agreed to a three-year plan to increase the minimum hourly pay rate before tying future hikes to the rate of inflation.
The plan — a compromise opposed by progressive lawmakers and organizations — calls for the wage in New York City, Long Island and Westchester County to hit $17 in 2026. Hochul, a Democrat, says it will be included in final budget legislation, which lawmakers are expected to approve next week.
Here’s what’s in store for New York’s minimum wage.
A three-year jump to $17
New York’s minimum wage is currently $15 in New York City, Long Island and Westchester County.
Under the tentative budget deal, that number would increase in each of the next three years.
- As of Jan. 1, 2024: $16 an hour
- As of Jan. 1, 2025: $16.50 an hour
- As of Jan. 1, 2026: $17 an hour
The rest of the state, where the cost of living is generally cheaper, would lag a dollar behind. So the minimum wage, currently $14.20 an hour, would increase to $15 in 2024, $15.50 in 2025 and $16 in 2026.
After that, automatic cost-of-living increases
For the first time, New York is set to tie the minimum wage to the rate of inflation, a move that — in theory — will take future increases out of the hands of the governor and state lawmakers.
In 2027 and beyond, the minimum hourly rate would rise at the rate of the Consumer Price Index for Urban Wage Earners and Clerical Workers, an index that accounts for inflation by tracking the market price of consumer goods. It’s the same index used to make cost-of-living adjustments for Social Security benefits.
It wasn’t clear on Friday whether the tentative budget deal would include any measures that would prevent an automatic increase if the economy were to significantly decline. That’s likely to be answered when budget legislation is printed, which is expected to happen over the weekend and into early next week.
Progressives were pushing for a higher minimum wage. How are they reacting?
Generally speaking, progressive lawmakers and organizations aren’t happy with the compromise.
They were pushing to increase the minimum wage to $21.25 by 2026, a move they say would better account for the significant inflation spikes of the last year. Then they wanted to tie it to inflation.
“The true cost of living in New York — and particularly within the five boroughs— simply cannot be sustained at $17 per hour,” said state Sen. Jessica Ramos, a Queens Democrat who sponsored a bill to raise the minimum wage. “This agreement has effectively codified a wage that keeps working families poor.”
That said, the $17 plan will be included in the final budget agreement. If lawmakers want to vote against it, they’ll also have to vote against dozens of other measures included in whatever budget bill the minimum wage plan is included in — which makes it much harder to vote no.
Hochul originally proposed simply tying future minimum wage increases to inflation, rather than providing a more immediate hike. But she says she’s on board with the compromise, which will affect about 900,000 workers statewide.
“This will be a lifeline for them and protects them from labor exploitation and gives them a measure of security that they've not had until now,” Hochul said.
The headline of this story has been updated to more accurately reflect where the wage hikes will be rolled out.
Tagged
Kathy Hochul
state budget
labor
Jon Campbell
Jon Campbell covers the New York State Capitol for WNYC and Gothamist. Prior to that, he covered the Capitol for more than a decade for the USA TODAY Network. He has twice earned the Walter T. Brown Memorial Award, an honor given annually by the Legislative Correspondents Association alumni for outstanding state government coverage. Jon grew up in the Buffalo area and graduated from the University at Albany. Got a tip? Email Jon at [email protected] or Signal at JonCampbellNY.90.
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