As part of his mayoral campaign, former New York Governor Andrew Cuomo is proposing an increase in New York City’s minimum wage, despite having previously blocked similar efforts during his time as governor.
If elected, he plans to raise it to $20 (£15.70) per hour by 2027, which would affect around 800,000 workers. This would surpass the current highest minimum wage in the country, which stands at $17.50 in the District of Columbia. The current minimum wage in New York City, Westchester and Long Island is $16.50 per hour. Meanwhile, the federal rate remains at $7.25, a figure that has remained unchanged since 2009 and applies in 20 states where there is no state minimum wage or where it is the set rate.
Cuomo emphasised the need for New York City to be a place where working families can afford to live and prosper. To help small businesses adjust to the proposed increase, he is suggesting a Small Business Adjustment Tax Credit to provide financial relief for employers with 10 or fewer full-time employees. This refundable credit would cover up to 30% of the additional wage costs per employee.
Representatives of New York City’s labour unions have welcomed Cuomo’s proposal, highlighting the challenges faced by low-wage workers in the city due to the high cost of living. The plan requires approval from the state Legislature before it can be implemented. Cuomo’s campaign has drawn comparisons to his previous efforts as governor to raise the state’s minimum wage to $15, which positioned New York as one of the first states to achieve this milestone.
As Cuomo competes against several other Democratic candidates in the primary election to challenge the incumbent mayor, Eric Adams, his plan to raise the minimum wage to $20 is a key part of his campaign. His main rival in the polls, state Assemblyman Zohran Mamdani, is advocating for an even higher minimum wage of $30 by 2030 and plans to reduce the impact on businesses by lowering fines and fees.
