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New York State Governor Announces Increase in Upstate Minimum Wage to $15/Hour

The Governor of New York State, Kathy Hochul, made the announcement today that New York State will proceed with the phase-in of the $15.00 minimum hourly wage for upstate counties on December 31, 2022.

As a result of the statutorily mandated economic analysis that was carried out by the New York State Division of the Budget, the hourly wage of workers located in areas of the state that are not New York City, Long Island, or Westchester County will increase by one dollar, going from $13.20 to $14.20. In addition, the minimum wage for home care aides, which becomes effective on October 1, 2022, will increase by an additional dollar, bringing the total to $16.20 per hour in counties located inside the state of New York’s upstate region.

“My team is doing everything possible to put money in the pockets of New Yorkers and address the rising cost of living,” Governor Hochul said. “With inflation and a national labour shortage impacting our state’s economy, my team is doing everything possible to put money in the pockets of New Yorkers.”

“Fair, competitive wages are crucial for helping families prosper and attracting top talent to our state, and our administration remains determined to using every tool at our disposal to advance New York’s economy forward,” said Governor Andrew Cuomo.

Increase in Upstate New York’s Minimum Wage Announced by Governor Hochul

By increasing the minimum wage, we are doing our part to assist lift up our friends and neighbours across the state of New York. Bringing forward the gradual wage increases over a number of years has not only assisted businesses in adapting to the ongoing changes, but it has also given low-paid workers the capacity to better support themselves and their families.

After the New York State Division of the Budget completed the statutorily required economic analysis, Commissioner Roberta Reardon issued an Order that called for an increase in the minimum wage rate in counties outside of New York City, Long Island, and Westchester. This was done in response to a request from Commissioner Reardon.

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Robert F. Mujica, Jr., the commissioner of New York’s department of finance, remarked

The Division of the Budget is pleased to offer its support for this rollout by doing an analysis that is both thoughtful and responsible in order to guide the achievement of the greatest possible results for New Yorkers. In the coming weeks, months, and year, the Division will continue to keep an eye on the state’s economy as well as the labour market, and it will analyse how these price hikes are affecting both areas.

This wage boost will assist an estimated 200,000 residents of eight upstate New York counties. Of these residents, 44% are employed full-time, and of those, approximately 25% are responsible for the financial well-being of children younger than 18 years old. In addition, this raise will assist in closing the pay gap between men and women, which is anticipated to provide an additional 110,000 women with increased financial security.

The rate at which an individual’s minimum wage grows in New York State is determined by both the location of their place of employment and the industry in which they are employed.

At the moment, the minimum hourly pay for workers in New York City, Long Island, and Westchester County is $15. After conducting an annual analysis of the state’s economy and labour market, the Director of the Division of the Budget, in conjunction with the Department of Labor, will determine the percentage increases that will be applied to the rest of the state’s increases. These decisions will be made prior to the implementation of the increases.

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Upstate Minimum Wage to Rise to $15 Over Several Years, as Announced by the Hochul Administration

It was stated today by the Labor Department of Governor Hochul that the department has reached the conclusion that the upstate minimum wage for general occupations should increase by 70 cents on December 31, 2021, to a new rate of $13.20 an hour.

That is in line with the rises that have occurred in each of the last six years. The minimum wage in the upstate region has increased by 70 cents every year, going from $9 to $9.70, then $10.40, then $11.10, then $11.80, and now $12.50.

The initial statute that established a multi-year plan of minimum wage hikes topped out at $12.50 per hour in upstate New York, stipulating that it should continue to rise to $15 per hour. The Labor Department, with assistance from the Budget Division’s analysis, was given the responsibility of determining how quickly that should take place.

The statute as it was originally written stipulated that the hourly minimum wage for the counties of Nassau, Suffolk, and Westchester will increase from $14 to $15 on the 31st of December, 2021. The price of a cup of coffee in New York City is currently $15.

The cash wage for tipped foodservice workers will increase proportionally as a result of the increase in the Upstate minimum wage from $12.50 to $13.20 at the end of the year. Outside of New York City, Long Island, and Westchester, the minimum cash pay for tipped workers in the food service industry will increase from $8.25 per hour to $8.71 per hour (subject to confirmation from the Labor Department).

Final Words:

The New York State Governor Kathy Hochul made the announcement that the state will keep moving through with the phase-in of the $15.00 minimum hourly wage for upstate counties on December 31, 2022. Workers in areas of the state of New York that are not located within New York City, Long Island, or Westchester County will receive a raise in their hourly wage of $1.00, bringing it up to $14.20.

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