The labor protest movement that fast-food workers started in New York City nearly four years ago is finally paying off. Wages will rise faster in NYC than elsewhere in the state because the cost of living is so much higher.
NYC minimum wage for fast food workers will then rise annually by $1.50 for the next 3 years, reaching $15 by the end of 2018.
Meanwhile, minimum wage for fast food workers elsewhere in New York state will rise by smaller amounts each year, taking until July 1, 2021 to reach $15. The Wage Board’s recommendation of a $15 minimum wage for fast food workers is critical to helping move NYC's economy forward. As Business Insider found last year, New York fast-food workers at the current minimum wage are worse off than all other minimum wage workers in the country. BI found that NY fast-food workers made nearly $4,750 per year below the amount they actually needed to afford living in NY. Eyes nationwide will be on fast food workers tomorrow as they strike in search of a $15-an-hour wage.
In interviews with the Observer, several Albany lawmakers cited the fast food workers as a visible example to New Yorkers of why a minimum wage increase matters — and why it matters even more so in New York City, with a higher cost of living than elsewhere in the state. Mayor Bill de Blasio called in his State of the City address for New York City to be able to set its own minimum wage, which is currently controlled by the state legislature — but Gov. Republican Senate Co-Leader Dean Skelos’ office did not respond to a request for comment. Last summer, the Seattle City Council passed a $15 minimum wage ordinance, making it the highest in the nation. Next Wednesday, the minimum wage in Seattle increases from the current $9.47 rate to either $10 or $11 an hour depending on the size of the business, the health care plan it offers and whether the workers make tips.
Earlier this month, the International Franchise Association sued the city of Seattle, saying the minimum wage ordinance discriminates against franchises by lumping smaller franchisees in with big businesses. Last week, there were reports that the wage hike was causing Seattle’s restaurants to close.
The city’s increase is a historic one, creating the highest minimum wage in the nation and one of the highest in the world. A household like yours in ___, ___ needs to earn $__ annually to make a secure yet modest living. Mother Jones encourages readers to sign in with Facebook, Twitter, Google, Yahoo, Disqus, or OpenID to comment. ConnectWe believe that we can use this blog to keep you up-to-date with news, legislation and top tips on everything to do with background screening, drug testing and pre-employment background checks.
For more information on the blog or what we can do for you, get in touch and we will do everything we can to help! New York is set to become the first state to offer a $15 minimum wage for fast-food employees, after almost three years of protests requesting higher wages in the food-service industry.
The change will affect all fast-food workers that are employed by restaurant chains with 30 or more locations or franchises in the nation.

Five cities in other states — including Los Angeles and Seattle — have also approved $15-per-hour wages across all industries, though none of these initiatives have expanded to the state level. While fast-food employees are doubtless thrilled with their big win, others have expressed some concern, both about the segmentation of the wage policy only for fast-food workers, as well as the economic effects the wage hike will have on the employers and the state.
However, those concerned about the effect on employers can have a little peace of mind by looking at wage hikes in other cities around the country. The wage increase is set to be rolled out in phases, with New York City employees receiving $15 per hour by the end of 2018, and throughout the rest of the state by 2021. In a related report by The Inquisitr, the CBO says the $10.10 minimum wage could cause one million Americans to be laid off from their jobs. The only reason McDonald’s could afford a $15 minimum wage is precisely because of their popularity. McDonald’s has also suffered a drop in popularity over the last year, making the $15 minimum wage harder to pull off. It only applies to workers in fast food restaurants that are part of chains with 30 or more locations.
There’s a big gap between minimum wage and a living wage, which is the actual hard dollar value needed to make a living in any given area.
No matter your personal feelings on the subject, this wage increase is a huge deal for those workers. Cuomo’s shift on the minimum wage showed the arguments in favor of a local New York City option had been effective.
Still, the elected officials argued there are key dates for the minimum wage bill coming up much sooner: the primary and general elections that will decide control of the State Senate. Camara said in his mind, allowing local control of minimum wages had less to do with party politics and more to do with pragmatism. Those large businesses with 501 or more workers include franchises like fast-food restaurants. According to CNBC, the franchise group wanted its members to be recognized as smaller businesses in order to delay the rise to $11 until 2017 and the increase to $15 until 2021. Those reports haven’t been proven, but the pay increase definitely changes the model for how a restaurant operates. Seattle’s minimum wage increase is described as a social experiment for the rest of the nation. Make a tax-deductible donation to fund our reporting—or read this if you need more convincing. How much does it really take to make ends meet in your city or state? Use this calculator to get a better sense of what fast-food workers are up against. Help hold the powerful accountable by funding our reporting with a tax-deductible donation today. Others think the minimum wage increase should have affected all employees regardless of industry. Pay increases and Seattle and San Francisco in recent years have caused some franchise owners to raise their food prices, though some say they have seen no effect on their businesses because of it.

Japan, Germany, Brazil, Belgium and even New Zealand will be involved in a massive walk-out for this fast food workers strike. Their sales volume is so much higher compared to other fast food and retail chains, which means worker’s salaries are a relatively low percentage of overall sales income. An analysis by economist John Schmitt at the Center for Economic and Policy Research shows that, if the minimum wage is indexed to the official Consumer Price Index (CPI-U), then the Federal minimum wage should be $10.52 an hour.
However, a federal judge later refused to issue an injunction to halt the wage increase for large businesses such as McDonald’s and Subway, leaving the April 1 wage hike to happen as planned. Currently, 36 percent of profits go to labor, with 30 percent for food and 30 percent for other expenses. While average incomes of the top 1 percent grew more than 270 percent since 1960, those of the bottom 90 percent grew 22 percent. Andrew Cuomo called an executive order to pass the initiative after the state Senate continued to drag its feet on raising pay.
The worldwide protest is meant to be a one-day event to demonstrate the outrage over these underpaid workers and appears to be primarily aimed at McDonald’s.
Other companies might not realistically be able to afford such a large increase without largely affecting prices, or forcing massive layoffs, which would make the increase in the minimum wage self-defeating. If you use the current methodology (CPI-U-RS) for calculating inflation, then the Federal minimum wage should be $9.22. So see these five things you should know about the historic wage increase ahead of next Wednesday. And the real value of the minimum wage barely budged, increasing a total of 7 percent over those decades. The only other option is to raise prices, with studies from last year claiming the Big Mac would increase by 68 cents and cheaper items would go up by 17 cents each.
Still, the 2014 first quarter revenues were $6.7 billion, which puts them somewhere around $27 billion in gross income for the year if profits continue their rebound. So, yes, unfortunately for the fast food workers strike, a $15 minimum wage is a bit too high on a national level.
Wages for fast-food chain employees in New York City would see the increase by the end of 2018, due to a higher cost of living, while the rest of the state would wait until mid-2021.
If we were to assume their operating costs almost doubled, this would take their roughly $5.5 billion net income and reduce it to less than $1 billion, leaving the company still profitable. Depending on where you live, a $15 minimum wage would also mean that fast food workers would make as much as some entry-level engineers and nurses with degrees. Restauranteurs say they will have to raise prices, lay off employees, reduce employee hours or even close their business entirely. PEARLIZED($0.75 each)(98 lb) A pearlized, white card stock that adds zest and fun to most any design.

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