According to the New York Times, Mayor Bill de Blasio plans to sign an executive order today designed to “significantly expand” New York City’s living wage law, covering thousands of previously exempt workers and raising the hourly wage itself, to $13.13 from $11.90, for workers who do not receive benefits.
The executive order will immediately cover employees of commercial tenants on projects that receive more than $1 million in city subsidies going forward. Workers who receive benefits such as health insurance will earn $11.50 an hour, compared with $10.30 before, the paper notes.
And the current living wage law, passed in 2012, has applied to about 1,200 jobs, officials say, excusing many retailers and companies that lease space as part of city-subsidized projects, the paper reports.
The paper says the living-wage change is also intended to frame a looming debate in Albany, where Mr. de Blasio hopes to win the authority to set the citywide minimum wage at the same amount. If Mr. de Blasio succeeds in matching the minimum wage to the living wage, all hourly workers in the city would earn more than $15 by 2019, according to the city’s projections.
New York Gov. Andrew M. Cuomo, who in February said that allowing local governments to set their own minimum wages would yield “a chaotic situation,” seemed to have reversed himself months later. He said he would support a plan, advocated by the Working Families Party, that allowed municipalities with higher costs of living to set their own minimum wages.
As a result, the governor has endorsed an increase to $10.10 in the statewide minimum wage, with a provision allowing New York City and other areas to raise their minimums as much as 30 percent higher, to $13.13.
It will be interesting to see how — and if — New York City’s example is adopted elsewhere when it comes to setting a higher bar for a living wage for workers.
Regardless, HR leaders should keep an eye on this development to ensure they won’t be caught off guard when a living-wage boost may be introduced in their municipality or state.Twitter It!