MINIMUM WAGE ON THE RISE
If you are earning minimum wage, expect that rate to rise in the coming years. Recent media reports suggest that New York Governor Andrew Cuomo plans to push for the approval of a new statewide minimum wage of $10.10/hour. Further, Cuomo also has a plan to allow localities to set their minimum wage up to thirty percent higher than the statewide rate.
New York is not alone in pushing for a higher minimum wage. Last month, Seattle agreed to raise the city’s minimum wage for its workers from $9.32 to $15/hour, the highest rate in the country. Why is there a growing consensus for a rise in the minimum wage rate? First, the minimum wage rate today is below the living wage, exacerbating poverty. Second, consumer spending would increase revitalizing a still-shaky economy coming out of a recession. Third, it would reduce government spending, as fewer people would need to rely on programs such as SNAP or Food Stamps.
Please be aware that the minimum wage is New York is currently $8.75 per hour with the current overtime set at $13.13 per hour (which will become $9.00 on December 31, 2015).
The overtime rate for hourly employees is calculated at one-and-a-half times their regular rate for all hours worked over 40 in a week. With the increase in the minimum wage, the overtime rates will also increase to $13.50 effective as of December 31, 2015. If you believe you are not being paid minimum wage or the proper overtime pay, please contact Akin Law Group for assistance at 212-825-1400.