Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: New York moves to increase state minimum wage for fast food workers, (Jul 23, 2015)
Organizations Mentioned:International Franchise Association | Service Employees International Union
By Linda O’Brien, J.D., LL.M.
On July 22, the New York Wage Board voted unanimously to recommend an increase in the minimum wage for fast food workers to $15 an hour by the end of 2018 in New York City and by mid-2021 in the rest of state. The recommended increase must go through a comment period and a regulatory review process at the state's Department of Labor before becoming final.
At a rally following the Board vote, New York Governor Andrew Cuomo said, “Franklin Delano Roosevelt started the minimum wage, and he said it is a wage that doesn’t just allow you to subsist, but to live a decent life. You cannot live and support a family on $18,000 per year in the State of New York, period. That’s why we have to raise the minimum wage.”
“The Labor Commissioner will review the work of the Wage Board but I think there is no doubt we are headed in the right direction . . . This is going to help hundreds of thousands of New Yorkers,” Governor Cuomo predicted. “But this is going to do something else because when New York acts, the rest of the states follow. That is the New York way.”
The Wage Board’s recommendation was not well received in every quarter. The International Franchise Association (IFA), which has opposed minimum wage hikes targeting franchises around the country, renewed its opposition to such “discrimination.”
"Today's New York wage board decision to discriminate against the quick service food industry will cost jobs and potentially cause small businesses to close,” declared IFA President Steve Caldeira. “Applying a new mandatory minimum wage increase to a narrow group of businesses creates an un-level playing field for owners that provide important entry level jobs and valuable experience for millions of workers across the state of New York. If Governor Cuomo wishes to advance a wage increase, it should cover all of New York’s businesses, not just a select few. IFA, along with the Coalition to Save New York Restaurants, will aggressively fight Governor Cuomo’s politically-motivated decision to discriminate against local franchise small business simply to satisfy the request of his allies at the Service Employees International Union.”
News: FranchisingDistribution NewYorkNews