BUFFALO, N.Y. (WKBW) — Some New Yorkers will get a raise, come January 1, because New York State's minimum wage will increase by $0.50 an hour.
As of January 1, the minimum wage will be $16.50 per hour in New York City, Long Island and Westchester, and $15.50 for the rest of the state.
This is part of a multi-year state plan to help people better make ends meet amidst the rising cost of living.
Cafe 59 which sits right on the corner of Allen and Franklin Street is owned by Leon Rung and when it comes to wages his philosophy is increasing them based on merit.
"Last January, it went up to $15/hour," Rung said. "Employees who only get the minimum and have been with me for a year are going to get an increase this year to keep them happy. Now that they are trained, I don't lose them to something else."
By the time there is a state increase his employees are usually at or close to said wage.
He said his employees who work in the back of house or kitchen get paid above minimum wage.
Servers make minimum wage, but since his restaurant gets a lot of business throughout the day, the servers are content with it.
"If you ask some people, they're against it," said Rung. "If you ask servers in a busy restaurant, they love it because they're making more like $25-$30 an hour with tips so they don't want the rules to change. They want to keep making tips."
Over on Elmwood Avenue at the Lexington Co-op it is a different story. Employees receive a starting wage of $16.50 an hour, at the Co-op.
Tim Bartlett, the Lexington Co-op's General Manager, said the increase is due to a union contract from 2023 when the Co-op unionized.
"A higher minimum wage just helps to level the playing field between small, local, independent and the big chain stores," said Bartlett. "Just make sure that everybody is being paid a good wage. It keeps costs relatively the same between us and a chain store."
Come 2027, there will be another change.
"If the CPI goes up by 3% or 5% in a given year then that's what the minimum wage will go up by," UB School of Management Associate Professor of Marketing Charles Lindsey said.
When the minimum wage increases, the cost of living is expected to increase.
"Always the possibility that when the minimum wage gets increased, there is always the possibility that consumers are going to see slightly higher prices and it could contribute a bit to inflation," said Lindsey. "On the other side of the coin, greater economic security."
