New York’s fast food wage board has followed in the footsteps of Los Angeles, San Francisco and Seattle by recommending that all fast food workers should have a minimum wage of $15 an hour by 2018 in New York City, and 2021 throughout the state, according to the Wall Street Journal. The fast food industry is up in arms over the recommendation, angry that their industry is being unfairly targeted and that the increase will be at a cost to small business owners (franchisee’s) that won’t be able to run their businesses. Workers, as expected, are overjoyed because they will be able to actually feed themselves and take care of their families, without the need for social welfare.
The issue is that New York State is absorbing the cost and burden of underpaid fast food workers through low-income subsidies, so they decided to switch the burden back to the employers. Minimum wage is currently only $8.75, so the change will be nothing short of dramatic.
If the state labor commissioner accepts the recommendation, which is expected, the wage increase will slowly roll out over 3 years. Times are changing and it will be interesting to see how this affects New York’s economy.
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