By Tom Precious
ALBANY -- The minimum wage increase coming together at the Capitol will include some protections for businesses, including tax breaks for companies that are required to hike the current $7.25 per hour level for workers they employ who are under age 20.
The looming deal, which will bring the minimum wage to $8 in January and $9 by January 2016, includes a permanant refundable tax credits to cover the difference between the current wage and the higher levels as they kick in. The tax break was a demand of Senate Republicans and is being backed by some business groups.
The minimum wage increase, pushed first by Assembly Democrats and made a priority by a breakaway group of independent Senate Democrats, will not be indexed for inflation. The deal, according to a legislative source, also does not include an increase for people making tip wages, such as waiters.
Officials said 50 percent of minimum wage earners in New York are under the age of 20. Senate co-leader Dean Skelos, a Long Island Republican, told The Buffalo News Sunday that protections for businesses that hire workers under age 20 was a priority for Senate Republicans; he predicted companies and not-for-profits would not be able to afford to hire as many young people if the wage hike was permitted without some sort of financial cover for those entities. The new provision discussed today by budget negotiators could also prod some companies to hire younger workers.
The minimum wage increase, pushed first by Assembly Democrats and made a priority by a breakaway group of independent Senate Democrats, will not be indexed for inflation. The deal, according to a legislative source, also does not include an increase for people making tip wages, such as waiters.
Officials said 50 percent of minimum wage earners in New York are under the age of 20. Senate co-leader Dean Skelos, a Long Island Republican, told The Buffalo News Sunday that protections for businesses that hire workers under age 20 was a priority for Senate Republicans; he predicted companies and not-for-profits would not be able to afford to hire as many young people if the wage hike was permitted without some sort of financial cover for those entities. The new provision discussed today by budget negotiators could also prod some companies to hire younger workers.
While legislative sources were confident the terms of the minimum wage deal will hold, last-minute snags could always change things in the hours or days ahead.
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