by Jon Dougherty, The National Sentinel
After three straight increases in the minimum wage, small-to-medium businesses in New York City are struggling to remain afloat and keep their doors open, according to a new analysis from the American Enterprise Institute.
Over three years’ time, Democrats who govern New York have voted for three increases in the state minimum wage, from $11 an hour to the current $15 an hour, or a 107 percent increase since 2013, AEI noted.
“The current state minimum wage outside of NYC is $11.10 an hour, so employers in the city are faced with paying a large 35 percent wage premium compared to their counterparts outside of the metro area for low-skilled workers. And it’s having a devastating effect on the city’s small businesses and restaurants,” AEI reported, citing a number of media reports in recent weeks to support its conclusions.
The Wall Street Journal reported this week that due to the inflated wage, businesses have been forced to reduce labor costs by reducing the number of employees. Also, some are raising their prices in order to offset the additional mandated wage increases.
“What it really forces you to do is make sure that nobody works more than 40 hours,” Susannah Koteen, owner of Lido Restaurant in Harlem, told the paper. “You can only cut back so many people before the service starts to suffer.”
© 2019 The National Sentinel