Minimum Wage

Author: mike durant Date: May 18, 2011

In 2004, New York increased the state minimum wage to its current rate of $7.15 per hour. This legislation also provided that New York would rise to match any prospective increase in the federal minimum wage over the current state rate. In a recent Member Ballot, 84 percent of NFIB/New York members opposed increasing the minimum wage and 67 percent opposed indexing any such increase. Increasing the minimum wage does not just affect wage rates -- it also affects employer costs by increasing unemployment insurance rates and Social Security taxes. This worsens the already adverse business environment in New York in which employers bear costs that are much higher than in most other states. It might also actually decrease the number of entry-level positions available, since businesses buy less labor as its cost rises. Indexing the minimum wage would ensure that it would rise every year, further adding to the burden placed on employers, causing New York to continue to have a minimum wage that exceeds the federal rate and that of other states, and placing our state at an even greater competitive disadvantage.

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