Restaurants Poised to Argue Against New York's $15/ hour Wage

New York fast food restaurant workers to receive gradual pay bump

An organization representing restaurants across the country is fighting New York's move towards a $15/hour minimum wage for those employed in the fast food industry. Last week, the National Restaurant Association filed a challenge through the Industrial Board of Appeals in New York arguing that the panel should throw out an order from September passed down from the State Department of Labor. This order would mandate higher minimum wages at fast food chains bringing the hourly wage up to $15.

This change would happen over the course of several years, gradually increasing to $15 an hour by a deadline of July in the year 2021. Those critics of the hourly wage bump had until an October deadline to file an official appeal.

Currently, the minimum wage for fast food employees is $8.75 an hour. According to a 25-page report issued by the National Restaurant Association, the Labor Department's move is a veiled attempt by the Governor to enact his own policy and bypass the State legislature. Governor Andrew Cuomo asked for Labor Commissioner Mario Musolino to create a fast food wage board earlier this year.

The purpose of the board was to evaluate the industry and determine whether workers within it were deserving of a higher minimum wage. The board was made up of three members and determined that restaurant workers be paid $15 an hour for any counter service restaurant that had more than 30 locations across New York. The minimum wage will slowly be increased over a period of five and a half years.

Those individuals supporting the measure believe that it's critical to helping fast food employees avoid poverty. Representatives from the Governor's office argued that more than 200,000 New York residents would be lifted out of poverty during this move.

Others argue that it would be an end to the corporate policies that helped oppress fast food workers who are essential to the day-to-day operations of these restaurants. The challenge filed with the Industrial Board of Appeals is a first step towards potential litigation. The State Board of Appeals has five members who are appointed by the Governor and confirmed by the Senate. The Board will rule first on the appeal. The losing side then has the opportunity to take the issue to court. According to opponents of this new law, one of the biggest challenges is the makeup of this board which previously did not include a representative of the restaurant industry. Since then, Kevin Ryan has been appointed in this role.     

Have you been subjected to unfair employment practices like wage theft? If so, contact one leading New York employment lawyers at the offices of Hepworth, Gershbaum & Roth PLLC at 212-545-1199 or online to learn more about your rights.