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New York Legislature Boosts Minimum Wage in Rebuke to Governor

Overriding a veto by Governor George Pataki, New York's Legislature has voted to raise the State's minimum wage by two dollars, to $7.15, over a two-year period. Earlier this year, the New York Legislature had voted to increase the State's minimum wage. Governor Pataki vetoed that legislation. However, on December 6th, the Senate voted to override the Governor's veto. Consequently, the State's minimum wage will increase from $5.15 per hour to $7.15 per hour over a two-year period. Effective January 1, 2005, the minimum wage will increase in New York to $6.00 per hour. It will increase again to $6.75 on January 1, 2006. On January 1, 2007, it will increase to $7.15 per hour. 

This increase is significant for several reasons. First, increases in the minimum wage tend to have a ripple effect through the economy. Second, the New York overtime law requires that time and one-half of the minimum wage be paid to certain otherwise exempt employees who work over 40 hours in a work week. Third, it may signal a willingness by New York lawmakers to exceed the requirements the federal Fair Labor Standards Act when they consider it appropriate to do so.