New York Forced to Skip Planned Minimum Wage Increase Because Its Economy Isn't Good Enough
New York State will not increase its minimum wage in January 2027, marking the first time the state has frozen wages since a 2023 law tied future annual adjustments to the rate of inflation and job losses.
Democratic Gov. Kathy Hochul, who is running for reelection in November, is seeking approval for the change from the Democrat-led state legislature, the Times Union reported last week.
New York officials said the state has lost thousands of private sector jobs this year, which triggered the law forcing the minimum wage freeze.
Consumer costs have also increased while confidence has floundered.
Hochul blamed the state’s woes on the “misguided policies” of President Donald Trump, citing his tariff actions and the Iran War.
“This change is good for workers and businesses as it will ensure that those hardest hit by Trump’s affordability crisis keep pace with the cost of living, maintain their purchasing power, contribute to the state economy, and support our small business community,” she said in a statement.
This news comes as other blue states are set to hike their minimum wages for 2027, including neighboring New Jersey.
California, Connecticut, Michigan, and Washington state will also be raising minimum wages beginning on Jan. 1, according to a Fox News report published on Tuesday.
Washington will have the highest wage at $17.73 an hour, up 60 cents from its current $17.13 rate. Connecticut’s minimum wage will rise from $16.94 to $17.48, while California’s will climb from $16.90 to $17.40.
New Jersey will increase the minimum wage by 56 cents to $16.48 an hour for most of its workers, while Michigan’s rate will climb from $13.73 to $15 an hour.
California was recently cited in a report by CNN about how high labor costs are causing businesses to close and hurting the local economy.
CNN senior national correspondent Kyung Lah interviewed Los Angeles business owner Tom Sopit, whose restaurant survived the COVID lockdowns but is now closing due to regulations, taxes, and high labor costs.
“The cost of goods, the cost of labor is much higher than everyone else in the country,” he noted.
“I think you can’t just keep taxing businesses and people,” Sopit added. “How are we just keep paying more taxes, but somehow the state just keeps going downhill? That doesn’t make sense.”
Lah was later interviewed by CNN’s Dana Bash about her sit-down with Sopit and said this type of governance is “going to chase Gov. Newsom as he seeks higher office.”
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