New Year, New Minimum Wage Increases for Upstate New York

by M. C. Millman

To address the rising cost of living, New York State is increasing the minimum wage in Upstate New York on December 31 of this year. 

Yesterday, Governor Hochul announced that New York State would continue with the $15.00 minimum hourly wage phase-in for upstate counties. The minimum wage for workers outside of NYC, Long Island, and Westchester County will be increased by one dollar per hour, from $13.20 to $14.20, following a statutorily required economic analysis conducted by the NYS Division of the Budget. Additionally, the minimum wage for home care aides (recently raised to $15.20 per hour on October 1, 2022) will increase by one dollar to $16.20 per hour in upstate counties.

The governor's website estimates that 200,000 New Yorkers in upstate counties will benefit from this wage increase, 44% of which are full-time workers, and of those, nearly 25% are supporting children below age 18. In addition, this increase will help to close the gender pay gap, providing an estimated 110,000 women with greater financial stability.

The governor's website did not address the impact this may have on businesses and workers. According to Harvard Business Review (HBR), economists are uncertain about minimum wage hikes and their long-term impact on American workers. 

A 2021 study conducted by HBR looked at the impact of a one-dollar wage increase on workers. The study found that the minimum wage hike impacted workers by reducing their hours, eligibility for benefits, and schedule consistency. As a result, there was an average loss of 11.6% of workers' total wage compensation. 

The HBR article concluded, "What can policymakers do to achieve their stated goal of improving worker wellbeing? The answer isn't necessarily to throw out raising the minimum wage entirely — but policymakers do need to approach these policies with caution."