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NYC delivery workers get minimum wage increase
New York City has set the minimum wage for app-based restaurant delivery workers to at least $19.56 before tips. What will that mean for you, the next time you want delivery? FOX 5 NY's Michelle Ross takes a look.
NEW YORK - New York State will raise the minimum wage by $0.50 to $16.50 an hour for employees in New York City, Long Island and Westchester, according to the state's Department of Labor. The rest of the state will also see a $0.50 increase to $15.50.
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The 2025 increases will be followed by another $0.50 increase in 2026.
The state agreed to a statewide minimum wage of $15 as part of the 2016-2017 state budget. It called for the increase to take place in a series of wage increases. At the start of 2017, the statewide minimum wage was $9.70. It was $10 an hour on Long Island and Westchester County.
Beginning in 2027, the minimum wage "will increase annually according to the Consumer Price Index."
The Consumer Price Index, or CPI, measures the average change in prices of goods over time, according to Reuters. Therefore, using the CPI essentially adjusts minimum wage increases based on inflation.
How many states are seeing minimum wage increases?
The federal minimum wage in the United States has stood at $7.25 per hour since 2009, according to the Associated Press. For tipped workers, that pay rate is even lower: $2.13.
States and some localities are free to set higher amounts. Twenty states, including New York, and Washington D.C., automatically adjust their minimum wage for inflation, according to the Economic Policy Institute.
In total, 24 states and D.C. will see minimum wage increases in 2025.
New Jersey minimum wage
New Jersey’s statewide minimum wage will be raised by $0.36 to $15.49 per hour for most employees on Jan. 1, 2025.
The increase was part of a scheduled hike stemming from a 2019 bill signed by NJ Gov. Phil Murphy. When Murphy took office back in 2018, the state’s minimum wage was $8.60 per hour.
"Aligning the state minimum wage with any increases in the cost of living is a critical step towards economic fairness and security for all New Jersey workers," said Labor Commissioner Robert Asaro-Angelo.
Under the law, the minimum wage rate for seasonal and small employees will continue to increase gradually until 2028. The minimum hourly wage for these employees will increase to $14.53 on Jan. 1, up from $13.73.
"This adjustment fosters a more equitable economy and ensures our workforce can continue to thrive," Asaro-Angelo said.
The minimum cash wage rate for tipped workers will rise to $5.62/hour from $5.26, with the maximum tip credit employers are able to claim remaining at $9.87.
Connecticut minimum wage
Connecticut’s minimum wage will increase on Jan. 1, 2025 from $15.69 per hour to $16.35 per hour.
CT Gov. Ned Lamont signed Public Act 19-4 back in 2019, which implemented five incremental increases in the minimum wage between 2019 and 2023, followed by future adjustments tied to the percentage change in the federal employment cost index.
"This law that we enacted ensures that as the economy grows, the wages of low-income workers can grow with it," Lamont said.
Connecticut Labor Commissioner Danté Bartolomeo reported that the employment cost index increased by 4.2% over the 12-month period ending on June 30, 2024, accounting for a $0.66 increase to the state’s minimum wage that will become effective on Jan. 1, 2025.
"This is a fair, modest adjustment for workers who will invest their earnings right back into our economy and support local businesses in their communities," Lamont said.