2019 marked the implementation
of NYC’s minimum wage increase to $15 per hour.
Any place of work that has 10 members of staff or more, has to pay them
at least $15 per hour. NYC will be the
43rd state to raise the minimum wage legally like this. In this
article, we look at the impacts of that.
the first US city that is implementing minimum wage for ride-sharing driver
employees is NYC. A requirement has been
passed by NYC’s Taxi and Limousine Commission for “high volume” drivers of such
vehicles to be entitled to $17.22 after expenses which would result in
an approximate $10,000 annual raise.
theory it’s great according to bakery boss Amy Scherber who has a 210-person
staff throughout seven bakeries in NYC:
“It is a very
tricky and delicate situation. We’d love
to give a good raise to every person, but the reality is there’s just not that
much extra money around.” Plus there is
the added complication of needing to give raises to those employees who were
already making $15 before 2019. You
can’t just “raise the bottom rung.”
So how is the
raised minimum wage likely to help?
Well, according to a recent
New York Times article, $70,000 is required per year for a
two-parent, two-kid family to look in Brooklyn. This is assuming both parents
are making $16 an hour. As such, $15 per
hour is still not going to cut it.
In this recent Forbes article, an expert panel spoke to eight Forbes New York Business Council members “to share their most effective tactics for getting their company noticed and started on the path toward success.”
The individuals are:
Samuel Mikail, SM Group Holdings Corporation
Tracey Sawyer, Krause Sawyer
Morris Levy, The Yard
Sriram Padmanabhan, Cymorg Inc.
Yana Zaidiner, Token Payments, Inc.
Giac Capital, Inc & Giacopelli Accounting and Tax Services, LLC
Hoda Mahmoodzadegan, Molly’s Milk Truck and F’in Delicious Beverages
Most New Yorker’s appreciate the increase in minimum wage.
Since 2016, minimum wage has been rising, from $9.70 an hour to a projected increase of $15 an hour by 2021. The rise in minimum wage means that employees can maintain a better standard of living.
“New York proudly set an example for the nation by raising the minimum wage to $15,” said Governor Andrew Cuomo said in a statement. “The fight for economic justice for our working families continues, and we won’t stop until every New Yorker is paid the fair wages they deserve.”
However, some New Yorker’s are concerned that the increase in minimum wage means that employees will reduce their hours. Small business owners with limited budgets may find themselves unable to pay their employees.
Most New Yorker’s, however, are greeting the change in minimum wage optimistically.
While people believe that living in New York can be crippling due to its expense, a recent article in Work at Home Adventures presented the Top 12 Ways to Earn Money Fast in New York City.
If you’re fascinated by the hype and pace of NYC, why not remove your clothes and become an art model? Making between $20-30 an hour there seems to be no shortage of opportunities for those comfortable in their bodies and “unafraid to pose in front of strangers.”
Mike Brassfield wrote a similar article on his Penny Hoarder blog. He presented money making options including dry cleaning delivery, Lyft/Uper driving, Airbnb rental and work from home positions through reputable ZipRecruiter.
April 29-May 5 is National Small Business Week 2018. But it actually started earlier. One event was held on August 27 – #SmallBusinessWeek Hackathon at the Ronald Reagan Building on Pennsylvania Avenue, Washington, DC. Those in attendance received assistance from third party companies and the federal government.
The idea behind National Small Business Week is to “encourage all New Yorkers to support local small businesses.” There are 530,000+ small business owners around New York, comprising 98 percent of all businesses, employing over 3 million individuals – 40 percent of New York’s private sector workforce.
According to Roberta Reardon, State Labor Commissioner:
“Small businesses are vital to the economic tapestry of our great state, and the Department of Labor is proud to support them through the many services we offer to help them with everything from finding employees to applying for tax credits and incentives.”
Yesterday the Microsoft Store hosted a series of workshops for small business owners including: Networking events, ChangeMakers: Modernize Your Small Business in the Cloud for Medical Professionals; Modernize Your Small Business in the Cloud for Realtors; NYC Speaker Series; Fuel Your Business with LinkedIn; LinkedIn Lunch and Learn; Modernize Your Small Business in the Cloud for Accountants; Microsoft 365 Business Mondays and more.
Rather than moving away from New York to beat high overheads and rentals, it looks like some companies are moving in. A whole slew of IT jobs with Estée Lauder Companies Inc. are being moved from Melville to new offices in Long Island City, Queens. The company’s “new technology hub” is set to open in July 2018 at 1 Queens Plaza North and will open in July.
In more good news for those in Queens, some believe that the Tax Cuts and Job Act will be beneficial for them…and not just the large corporations. One native, Tom Clarke, a franchisee of Arby’s and Burger Kings, called the new law a “phenomenal thing,” resulting in his workers getting an additional $40-50 increase in their biweekly paychecks. That’s really money in the pocket which, until the law would go directly to “government coffers.”
A recent study has shown that New York offers employees many advantages as compared to other states nationwide. According to a list put out recently by Fortune Magazine, out of 100 best companies, 9 of them are in New York. Categories in the study included: perks, compensation, paid vacation, and more. Companies included had at least a thousand workers. Wegmans was considered the best place to work in New York (and was ranked Number 2 in the nationwide list).
New York is also good for workers who want to be parents and get good parental rights. One example is 34-year old father of two Rob Bralow who took paid paternity leave. The co-owner of BLVD Wine Bar is reported to feel “incredibly privileged to be able to take the time away to be with my newest family members.”
And why did he get this privilege? At the beginning of 2018, New York was one of just a handful of states that put into law paid family leave for anyone who works for a private employer, giving “paid time off to bond with a newly born, adopted or fostered child; to care for a close relative with a serious health condition; or to assist when a military family member is deployed abroad.”
NYC is not just about the nightlife…the job culture there is pretty inviting too.
Minimum wage and New York have been some buzzwords going around for a while now. At the beginning of last year, there was an increase of 50 percent in New York’s tipped minimum wage with that for fast-food workers increasing by 17 percent.
In 2017 minimum wage increased by 22 percent. by the end of next year, any company that has 11 staff members or more will have to pay them at least $15 per hour. For other workers it will increase to $10.40. This is a marked 67% increase on the previous minimum wage for these companies.
Over the next few years the minimum wage in NYC will rise even more, until it reaches $15 in 2019. However, according to data from the New York Labor Department, there has been – for the first time since 2009 – a decline in employment growth indicating that job growth remains prosperous following a minimum wage increase.
When it comes to revenue, which privately-held company is doing best in New York? Based on 2016 revenue data, Crain’s has determined their list, with the top three as:
However, Partnership for New York City analysis found that business in New York is lacking in metropolitan characteristics. It found that most of New York’s foreign companies actually come from Europe and thus it is the responsibility of the government to make it more attractive for businesses from Asia, the Middle East and South America to come to America. As Partnership President Kathryn Wylde said: “We should really pay attention to countries with a growing market demand for goods and services from New York, and one important way to do that is to have more of their companies have operations here.”