Business

NYC's minimum wage increase may result in a business flight




Business owners in New York City can soon take a trip – to nearby cities in New Jersey and Connecticut, where labor costs now look much more attractive, say work experts.

By January 1, New York City will officially go to minimum hourly wages from $ 13 to $ 15 for companies with 11 or more employees compared to a government increase of 25 cents in New Jersey to expect inflation.

And as New Jersey's new minimum interest deposit of $ 8.85, or 41 percent lower than Big Apple's, Connecticut stands at $ 10.10 every hour.

"New York City is increasing at the same time as we are hearing about an increasing number of stores closing in New York City," said Michael Saltsman, research director at the Employment Policy Institute, and noted how many of these companies offered "gateway" work in low-wage sectors. They were a step towards higher salaries later for workers who gained experience and more education.

The prospect of businesses avoiding the Big Apple, or moving from New York City to lower paying New Jersey and Connecticut, is gaining momentum as the clock ticks against New Year.

"A new New Year comes with another mandate increase in New York City that small businesses need to figure out how to get by," said Andrew Rigie, CEO of the New York City Hospitality Alliance, summarizing feelings among many of his fellow men in service sector. "Let us hope that consumers are willing to pay the higher prices needed to compensate for the mandate."

All told, arriving December 31[ads1] or January 1, 20 states and 23 locations nationwide would increase the minimum wage. The increase will have different iterations in the New York state, such as a $ 13.50 jump in New York City for employers with 10 or fewer employees; $ 12 in Nassau, Suffolk and Westchester counties, and $ 11.10 every hour in the rest of the state.



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