Increased Living Wage Law for New York City

Mayor Bill de Blasio's expanded living wage law will mean
more income for minimum wage workers in NYC.
Image:   lev radin / Shutterstock.com
Mayor Bill de Blasio signed an executive order on Tuesday, September 30, that will dramatically expand New York City’s living wage law.  Thousands of previously exempt workers will now be covered, and the hourly wage will be raised from $11.90 to $13.13 for workers not receiving benefits.  Workers receiving benefits will see their wages increase from $10.30 to $11.50 an hour.

The order is part of a broader move to increase minimum wage across the state.  Should de Blasio succeed, city workers could be earning as much as $15 an hour by 2019.  However, he is likely to face opposition in Albany, where previous attempts to increase wages at the local level went nowhere during the state legislature’s last session.  Debates are scheduled to continue next year.

The original living wage law, passed in in 2012, was a compromise deal that applied to developers getting more than $1 million in city subsidies.  It was seen as problematic because it didn’t include tenants, which meant that retail stores in these buildings didn’t have to pay a living wage to their workers.  In addition, it only affected about 1,200 jobs.

The original law also specifically excluded part of the Hudson Yards development on the Far West Side, which will be covered under the new order.

“I am thrilled by this,” said Stuart Appelbaum, head of the Retail, Wholesale, and Department Store Union. “Extending the living wage to cover tenants in buildings is crucial. It’s a tool for attacking income inequality in the city. I think for each family who is affected, this is a life-changing event.”

The administration estimated that 18,000 workers would be covered over the next five years--about 70% of all the jobs at businesses receiving new financial assistance from the city’s Economic Development Corporation.

Some exemptions still apply:  Businesses with a gross income below $3 million, housing projects with more than 75% affordable units, and manufacturers are not affected by the new law.

In general, however, supporters hope the law will diminish the growing divide between rich and poor. 

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