New York Increases Minimum Wage, Creates Paid Family Leave

In its most recent budget, New York passed two initiatives aimed at improving the financial situation of low- and middle-income workers: a raise in the minimum wage and the establishment of a Paid Family Medical Leave program.

As the table below shows, the minimum wage will go up to $15 per hour in New York City and the surrounding area, while it will go to $12.50 in the rest of the state with a pause for the study of the economic impact.

Beginning in 2018, employees who have been working for their employer for at least six months will be eligible to take up to 12 weeks of paid family leave to care for an infant or family member with a serious health condition.

The benefit will start at up to 50 percent of the employee’s average weekly wage, capped at the statewide average weekly wage in 2018, rising to 67 percent of the employee’s average weekly wage in 2021.

The leave would be funded through a payroll deduction of $0.70 per week in 2018, rising to $1.47 weekly deduction in 2021.

— by Allison Cook, PHI New York Policy Associate