New York City business owners may soon take a hike — to neighboring towns in New Jersey and Connecticut, where labor costs now look much more attractive, say labor experts.
By Jan. 1, New York City will officially hike the minimum hourly wage from $13 to $15 for businesses with 11 or more employees, compared with a statewide increase of 25 cents in New Jersey to account for inflation.
And as New Jersey’s new minimum rate notches in at $8.85, or 41 percent lower than the Big Apple’s, Connecticut is standing pat at $10.10 hourly.
“New York City is raising the minimum at the same time as we hear of an increasing number of stores closing in New York City,” said Michael Saltsman, research director at the Employment Policies Institute, noting how many of these enterprises offered “gateway” jobs in low-wage sectors. Those were a step toward higher pay later for workers who gained experience and more education.