Fast Food Joints Owners to Contest Pay Hike for Workers

Published By : 18 Aug 2015 | Published By : QYRESEARCH

The fast-food joints owners in New York have geared up to contest the proposal recommending a hike in the minimum wage for workers in fast-food joints to US$15 per hour. This recommendation has been proposed by a state Wage Board.

The proposal asking to increase the wage, which currently stood at US$8.75 per hour, would be implemented completely over the next six years, having started with a hike by the end of 2015. The proposal requires an approval of the labor commissioner of the democratic government led by Mr. Andrew Cuomo. The incumbent governor of New York, Cuomo, has supported the increase, so the certainty of approval for this proposal is high.

In the previous month, the three-member wage board recommended unanimously that the US$15 per hour rate be phased in by December 31st, 2018, for New York City. The target date set for the rest of the State is July 1st, 2021.

The decision of the wage board was based on 4 public hearings in June, 2015, wherein, the advocates repressing the industry as well as workers testified. While the complaints against the pay hike filed with the labor commissioner are not likley to disrupt it, they indicate the legal arguments being considered by fast-food joints owners, who warn that it would force price hike of products and perhaps swap workers with automatic service stations.

An advocate for the National Restaurant Association, in a letter opposing the hike, argues that the pay hike is unfair as it only applies to national chain restaurants and invades on the authority of the Legislature to pass the minimum-wage hike.
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