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Cuomo's proposed minimum wage hike draws criticism from business leaders

Governor Andrew Cuomo
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Flickr

In last week's State of the State Address, Gov. Andrew Cuomo announced a proposal to raise the minimum wage to $10.50 per hour across the state and $11.50 in New York City by the end of 2016. The increase isn't a done deal though.

State business leaders criticize the measure they say would force them to slow hiring and cut hours.

Sharon Stiller, a Rochester-based employment law expert, says any change will affect state businesses.

"It's pure economics," Stiller says. "The more businesses spend on fixed costs, such as labor, the less they have available for profit or expanding or things of the sort. It is a consideration."

The minimum wage is already scheduled to increase from the current $8.75 to $9 an hour by 2016.

Any minimum wage increase would have to pass a resistant Republican-led Senate first. Meanwhile, Cuomo's critics on the left don't believe the increase is enough.

Cuomo says it's a move to life low-wage workers out of poverty, but according to Stiller there are other ways to address the issue.

"In certain industries, New York requires that a prevailing wage be paid -- which is higher than the minimum wage," Stiller said.

Unlike some other states, New York doesn't allow municipalities to establish their own minimum wage. New York City Mayor Bill de Blasio has sought the ability to set a higher minimum wage in his city. The governor offered a compromise of setting the wage higher there, but maintaining state control.