No delay in minimum-wage hike to $14 per hour on LI, state says

The minimum wage on Long Island will increase by $1 to $14 per hour on Dec. 31 despite the coronavirus pandemic that has put many businesses on the ropes.

Gov. Andrew M. Cuomo’s administration has said there will be no delay in the scheduled pay hike because the affected regions, including the Island, are leading the economic recovery, and low-wage workers need help.

The announcement on Wednesday followed calls for a postponement of the next phase of the mulit-year wage increase by the Republican minority in the State Legislature. Unions and Democrats said the gradual pay raise to $15 per hour shouldn’t be interrupted.

The state Department of Labor, which oversees implementation of the minimum wage increase, said a study by the state Division of the Budget found no negative impact on economic growth from the increases, which began in December 2016. The unemployment rate hit an historic low of 3.7% statewide in February before COVID-19 hit, said Labor Commissioner Roberta Reardon.

"Before this crisis, we achieved record low unemployment rates while increasing the minimum wage — improving the lives of thousands of New Yorkers — and we will rebuild our economy while continuing to lead the nation in the fight for economic justice," she said.

However, the Dec. 31 increase could slow the economic recovery, according to the study, which was used to determine whether to proceed with the pay hike's next phase.

"COVID-19 has dramatically changed the economic landscape, casting doubt on whether the capacity to absorb minimum wage increases without adverse impact can continue over the near-term," the eight-page study states.

Still, supporters of raising the minimum wage focused on another section of the study that states: "Close examination of the available economic data by region suggests that the labor-market recoveries in Long Island, Westchester [County], and the remainder of upstate are proceeding apace and are not likely to be substantially harmed by the minimum wage increases scheduled for the end of this year."

Besides the Island, Westchester will see the hourly minimum climb $1 to $14, while the rate in upstate will go from $11.80 to $12.50.

The $15 minimum wage will be fully implemented in Nassau, Suffolk and Westchester on Dec. 31, 2021; it’s already in effect in New York City.

Advocates for small businesses said to conclude that raising the minimum wage in the midst of the pandemic won’t have negative effects "requires a suspension of logic."

Greg Biryla, state director of the National Federation of Independent Business, or NFIB, called for a postponement.

"Restaurants, local retail, bars, entertainment venues, hotels and small businesses of every kind have been battered during the pandemic," he said. "They’ve been forced to close, forced to lay off and forced to watch their life’s work vanish in front of their eyes."

Biryla cited a nationwide NFIB survey of nearly 600 small business owners this month that found 25% saying they do not believe they will be operating six months from now.

The study by Cuomo's budget division estimated 1.4 million New Yorkers would earn the minimum wage in 2021, or 15.6% of the workforce. Among them, 56% will be women, 45% will be age 35 or older and 62% will be white.

Minimum-wage jobs are concentrated in three sectors: hospitality and leisure, retail and social services. Together, they have seen the greatest number of job cuts during the pandemic, the budget division found, adding pre-COVID employment levels won’t be reached until 2025.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.