ALBANY- In the state budget adopted in May, a plan was approved that would raise the minimum wage annually to keep up with inflation beginning in 2027. January 1, 2024, will bring another scheduled increase to the state’s minimum wage and while these changes will help earners at the bottom of the income scale, some employers are concerned about their ability to address higher payroll expenses.
The indexing of minimum wage will be indexed to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in the Northeast. This means that if inflation rises, the minimum wage will increase accordingly. According to supporters, the plan is crated to offer workers more stability. The move to index the minimum wage to inflation is not unique to New York; 18 other states and Washington, D.C. have already implemented similar measures.
While public opinion appears to favor indexing, employers’ views are divided. Some have voiced concerns about the potential impact on their businesses, particularly small employers with less cash reserves to handle increased labor costs. To manage these changes, some businesses might consider reducing work hours, turning to automation, or raising prices. On the other hand, supporters of the measure believe that it will create a more stable workforce and have a positive economic impact as workers spend their additional earnings locally.
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