In May, Governor Cuomo ordered the State Labor Commissioner to create a Wage Board panel to investigate whether the wages paid in the fast food industry could sufficiently support workers. The Board issued its recommendation on July 22, calling for a new minimum wage of $15 per hour for fast food workers.
The Wage Board panel recommended that the minimum wage be raised in increments, with quicker increases in New York City to accommodate the higher cost of living. Although the normal New York minimum wage will be increasing to $9 per hour at the end of this year, fast food workers will receive a minimum of $9.75 across the state, and $10.50 in New York City. The industry will meet the $15 per hour mark in 2018 in New York City and in 2021 across the rest of the state. The recommendation was made based on evidence that fast food workers are of a certain demographic that cannot reasonably live on the state’s minimum wage.
Under the new plan, “fast food” employers are defined as those restaurants that are a part of chains of 30 or more locations and offer food to go from a counter. Up to 200,000 workers are expected to be affected by the new minimum wage.
State law does not require the state legislature to pass a bill in order for these minimum wages to take effect. Instead, the administrative rule requires only approval from the State Labor Commissioner. The Commissioner signed the new rule in September. Governor Cuomo subsequently pledged to fight for a $15 minimum wage for all New Yorkers.