NYC mayoral candidate Zohran Mamdani's goal of higher minimum wage gets support of new coalition

A national nonprofit focused on better pay for working class people has launched a coalition in support of New York City mayoral candidate Zohran Mamdani's policy goal of increasing the minimum wage to $30 an hour by 2030.

The group, One Fair Wage, is particularly concerned about a two-tiered minimum wage structure, said Saru Jayaraman, co-founder and president of the Manhattan-based group at a news conference Tuesday where they urged legislators to pass a law making the increase statewide.

While the minimum wage is $16.50 in New York City, Long Island and Westchester — and $15.50 in the rest of the state — tipped workers in the state have a different minimum. Service workers in New York City, Long Island and Westchester get a "cash wage" of $13.75, plus a $2.75 tip credit. Food service workers in those same three regions get an $11 cash wage and a $5.50 tip credit. 

Fair Wage, which has called its new group the New York Living Wage for All Coalition, said those wages fall well below the cost of living in the region. 

Listening to the people

"People want and need to be heard," Jayaraman said.

The nonprofit represents 300,000 restaurant and service workers, and 1,000 small business restaurant owners across the country, she said, including 25,000 worker members and more than 100 small business restaurant owners in New York.

"The cost of living is completely out of control. We need a living wage for all," Jayaraman said during the news conference in Manhattan that also featured comments from several workers who would potentially benefit from the Mamdani plan as well as elected leaders and others. 

"I've seen how deeply unfair and unsustainable this subminimum wage system is for workers who keep this industry going," said Jonathan, one of the workers, who did not give his last name when he spoke at the Tuesday livestreamed event.

"Relying on tips alone creates instability and leaves workers vulnerable to unpredictable income, and forces many to tolerate unfair treatment for fear of losing their livelihood," he continued. "So us restaurant workers, we deserve dignity and full minimum wage on top of the tips. It would provide that stability."

Fair Wage and others pointed to an MIT Living Wage Calculator showing a working adult living with one child and a nonworking adult in New York needed to earn nearly $45 an hour to meet basic needs

Lt. Gov. Antonio Delgado, who has announced plans to challenge Gov. Kathy Hochul in the Democratic primary for governor next year, said democracy was on the line as economic inequality continued to rise.

"$30 by '30 is the mission," Delgado said at the news conference, which also included Assembs. Jessica Gonzalez-Rojas (D- Queens) and Claire Valdez (D-Queens).

"Ending subminimum wage is the mission," he said. "It's not just about protecting and enabling our democracy, which should be everybody's concern. But it's the people who are left behind, the children who are being left behind." 

Bill proposal

Gonzalez-Rojas said she has sponsored a bill that would increase the minimum wage for food service employees. Her office said she would reintroduce the bill this session.

A memo on the bill states: "For many years, employers of food service employees have been provided with a credit that reduces the hourly minimum wage paid to employees receiving gratuities. These employers now pay $7.50 per hour to workers, so long as workers receive on average the difference between their reduced minimum wage and the statutory minimum wage in tips, which has led to a subminimum wage. ... Employees who are not made whole by gratuities face arduous legal processes to recover their owed wages."

Gonzalez-Rojas said unless the minimum wage is increased, "this means women — the majority are women of color — they're left behind. They're struggling with 66% of the minimum wage. If you work in a fine dining restaurant, you might do OK. But many people work in the delis, the 24-hour diners in my neighborhood. They're not earning these high tips."

Other considerations

Others contacted by Newsday said they recognized the need for better wages but warned of potential issues boosting every job to $30 an hour.

"We want people to have a fair, living wage, but not every job is meant to support a family of four," Assemb. Edward Ra, (R-Garden City South) told Newsday. "If a deli has to pay a teenager up to $30, I don't know that they're going to be willing to do that." He said such a wage hike "harms the ability of people to get that first job."

John Rizzo, a professor of health economics at Stony Brook University, said in an email: "I think $30 by 30 may be a bit aggressive. But I do believe the minimum wage should be raised each year to offset the effect of inflation. Perhaps $25 or $27 by '30 would be more realistic. Restaurant workers do get low wages and tips are inconsistent. But dramatically increasing their wages would be a bridge too far. If possible, restaurants should require minimum tip percentages."

Matt Cohen, president and CEO of the Long Island Association, the region's largest business group, said in a statement: "While our region's high cost of living makes it difficult for many people on Long Island, the current law indexes the minimum wage to inflation, but further increases would squeeze small businesses already grappling with our affordability crisis. Instead, we need to address cost drivers including taxes, housing, and child care to retain and attract residents and ensure a superb quality for all."

Dorothy Roberts, president of the Long Island Hospitality Association, based in Northport, told Newsday: "Before we take a stance on it, we would have to do more analysis, as far as what the indicators are economically on Long Island in the next five years to be able to sustain doing that," she said of raising the minimum wage to $30 an hour. 

Roberts added, "We want to provide as much support and the best wages that we can for any employee in the hospitality industry. ... But there has to be a balance," citing added costs that employers would face.

By Olivia Winslow

olivia.winslow@newsday.com@newsollie