Author: Hans & Associates, P.C.-Stephen D. Hans
Like other businesses, New York restaurant owners face significant challenges in today’s job market. Currently, members of the New York legislature have proposed raising the minimum wage from $7.25 to $8.50. From a restaurant owner’s standpoint, how would this affect running a restaurant?
As with many issues today, divisive views exist. However, both sides of the debate agree that the restaurant industry is one of the most affected by minimum wage increases. This is because most restaurants set wages at or around the minimum wage rate.
Syracuse.com reported estimates by an assistant research professor, Jeanette Wicks-Lim at the Political Economy Research Institute at the University of Massachusetts. She calculated that restaurant owners would raise a $20 meal to $20.20 to cover the wage increase expenses. She said wage increases would not necessarily result in layoffs. In contrast, Michael Saltsman, a research fellow at the Employment Policies Institute, partly funded by the food industry indicated that historically, minimum wage increases have resulted in layoffs. Read More
With legal changes looming on the horizon, restaurant owners are wise to consult their accountants and New York employment defense lawyers to make sure they comply with regulations and avoid fines or lawsuits.