In a bold move that could significantly alter the economic landscape of New York City, Andrew Cuomo, the Democratic Party's leading candidate for the city's mayoral race, has pledged to increase the city's minimum wage to $20 per hour if he is elected.
This would position the city's wages among the highest in the nation. Cuomo, a former governor, often cites the state's minimum wage as one of his most significant accomplishments during his tenure in Albany. He proudly notes that New York was the "first state to pass the highest minimum wage in the United States," as reported by The New York Times.
"New York City needs to be a place where working families can afford to live and thrive, and right now that's out of reach for far too many in what is supposed to be the greatest city in the world," Cuomo stated. His proposal, which he plans to announce at a campaign rally, has garnered the support of several unions endorsing his candidacy, including the Retail, Wholesale and Department Store Union and the Amalgamated Transit Union. Most of the city's major unions have thrown their weight behind the former governor.
Cuomo's proposal, which he describes as "an aggressive, progressive action that will help hourly workers and stimulate the economy," would require the approval of Gov. Kathy Hochul and state lawmakers. These lawmakers had previously raised the minimum wage to $16.50 in New York City, Westchester, and Long Island this year. The minimum wage in the rest of the state currently stands at $15.50 and is expected to rise based on inflation.
It's worth noting that several communities in Washington state already have a minimum wage higher than $20 an hour. The minimum wage in Washington, D.C., is also among the highest in the country, at $17.50 per hour, a stark contrast to the federal minimum wage, which remains at $7.25.
Cuomo's proposed new rate would take effect on Jan. 1, 2027, or one year into his first term if he is elected. This would result in a wage increase for approximately 800,000 workers in New York City. Other Democratic candidates have also announced plans to address income and affordability, including state Assemblyman Zohran Mamdani, who has proposed raising the New York City minimum wage to $30 an hour by 2030.
Cuomo's history with the minimum wage dates back to 2016 when, as governor, he signed a law raising the minimum wage to $15 for most workers after advocating for the change for years. His campaign for mayor suggests that the proposed minimum wage hike aligns with what it would have been if the increase in 2016 had been indexed for growth to the Consumer Price Index rate. With a compound annual growth rate of 2.7%, the minimum wage would have reached $19.57 in 10 years.
In addition to the wage increase, Cuomo has proposed a tax credit for small businesses to help them manage the higher wage. The credit would apply to businesses with 10 or fewer full-time workers, initially covering 30% of the wage increase but decreasing over time.
However, not everyone is on board with Cuomo's proposal. Mayor Eric Adams, who is running as an independent in November, criticized Cuomo at his weekly news conference on Tuesday, suggesting that Cuomo would say "anything to get elected," including changing his stance on cuts to public employees' pensions.
As the race for the mayoral seat heats up, it remains to be seen how Cuomo's bold proposal will resonate with voters and whether it will be enough to secure his victory. The implications of such a significant wage increase could have far-reaching effects on the city's economy and the lives of its workers.
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