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April 1 2019

Survey: New York Restaurant Jobs Threatened by $15 Minimum Wage

by Charlotte Hays

One of the best things about New York is the great restaurants.

But a lot of these restaurants now are hiking prices and reducing employee hours.

The reason?

The new $15 minimum wage.

The New York Post reports:

A once-growing industry is contracting, according to an online survey conducted by the New York City Hospitality Alliance, an association representing restaurants in the city.

Last year, “full-service restaurants recorded a 1.6 percent job loss, which is the first recorded annual loss in two decades,” said Andrew Rigie, executive director of the trade group.

The survey also said about a third of respondents will eliminate jobs and most will raise prices this year because of the new $15-an-hour law backed by Gov. Andrew Cuomo and other state officials, which took effect on Dec. 31, 2018.

A total of 76.5 percent of full-service restaurant respondents reduced employee hours, and 36 percent eliminated jobs in 2018, the survey said.

Also, 75 percent of limited-service restaurant respondents reported that they will reduce employee hours, and 53 percent will eliminate jobs in 2019 as a result of the wage increases, according to the survey.

In defending the minimum wage hike, Governor Cuomo said that all New Yorkers "deserve to make a living wage."

Ironically, the unrealistic minimum wage will prevent a lot of New York food servers from doing just that.

 

 





Independent Women's Forum is an educational 501(c)(3) dedicated to developing and advancing policies that aren’t just well intended, but actually enhance people’s freedom, choices, and opportunities. IWF is the sister organization of the Independent Women’s Voice.​
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