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New York Minimum Wage Hikes in 2018 - Are Small Businesses Ready?

For most employers, the cost of labor is the biggest expense in producing their goods or services. Over the next few years, the minimum wage for non-government workers on Long Island, in Westchester County, and in New York City will be rising to $15.00/hour. The increase will take longer in counties north of Westchester.

As labor costs rise, and margins get squeezed, do employers cut employees, cut hours, or raise prices on their goods or services (and possibly lose customers)? Or even go out of business?

The table below sets out the minimum wage increases for most employees and is taken from New York's Department of Labor website (because I can't improve on it):
Upcoming Minimum Wage IncreasesThe Minimum Wage rates are scheduled to increase each year on 12/31 until they reach $15.00 per hour. Employers must post a Minimum Wage Information poster in their establishment.
Location
12/31/16
12/31/17
12/31/18
12/31/19
12/31/20
2021*
NYC - Large Employers (of 11 or more)
$11.00
$13.00
$15.00
NYC - Small Employers (10 or less)
$10.50
$12.00
$13.50
$15.00
Long Island & Westchester
$10.00
$11.00
$12.00
$13.00
$14.00
$15.00
Remainder of New York State
$9.70
$10.40
$11.10
$11.80
$12.50
*
General Minimum Wage Rate Schedule
* Annual increases for the rest of the state will continue until the rate reaches $15 minimum wage (and $10 tipped wage). Starting 2021, the annual increases will be published by the Commissioner of Labor on or before October 1. They will be based on percentage increases determined by the Director of the Division of Budget, based on economic indices, including the Consumer Price Index.


For workers in the hospitality industry, including fast food workers and workers who get tips, the 2018 minimum wage rules are summarized on the poster that employers must display "in plain view".

The 2018 wage rates for workers in the apparel industry can be found here.

The 2018 wage rates for for farm workers can be found here. 












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