Last Wednesday, Chamber Government Relations and Public Policy Manager, Mina Hoblitz, joined our statewide business partners to advocate for unemployment insurance relief and against the state’s proposals to increase minimum wage and index it to inflation.
While the Chamber and our allies were pleased to see the legislature include recommendation in their one-house budget proposals to include “conduit financing” or a $2 billion bond, we continue to urge the Governor and our elected officials to utilize unspent COVID relief aid and or the state’s surplus dollars to pay off this debt. Our businesses cannot withstand any further increases to their state or federal UI tax rates nor another ten-to-twenty-thousand-dollar interest assessment surcharge this coming fall.
The Chamber is strongly opposed to the state’s efforts to increase minimum wage. If the legislature’s proposal S.1978A (Ramos)/A.2204A (Joyner) were to pass, businesses would be expected to raise their minimum wage 40% in just three years’ time. This does not account for other long-time staff members or those with more responsibility that will also expect an increase in pay. In addition, businesses will be paying approximately 18% more in other employer mandated contributions such as Social security, Medicare, Workers Compensation, etc.
According to a study conducted by REMI and sponsored by NFIB, over a ten-year period, increases to the state’s minimum wage will result in 128,000 less jobs – where 83% of those jobs come from small businesses. Even worse, this loss in jobs will lead to a loss of $12 billion in economic output.
To see REMI’s study, please click here: https://assets.nfib.com/nfibcom/Economic-Impacts-of-a-Proposed-Minimum-Wage-Increase-in-New-York-State-2023.pdf
We urge you to contact your legislator’s today Senator Webb, Senator Peter Oberacker, Assemblywoman Lupardo, Assemblyman Joe Angelino and the Governor’s Office Governor Kathy Hochul and ask them to fund UI relief in the state budget and oppose any increases to minimum wage.
Localized Wage Price Spiral – A Small Business Nightmare. Review the Chamber’s One Pager for more information!