NYC restaurants cutting staff hours as minimum wage hits $15

[Peter1469]

NYC restaurants cutting staff hours as minimum wage hits $15

We said it would happen. It did.

The legal minimum wage for New York City employers with 11 or more workers rose more than 15 percent on Dec. 31, 2018, to $15 per hour from $13, giving fast-food, retail and other employees a bump in pay. But some New York City restaurant owners say the latest minimum wage hike is forcing them to cut workers' hours just to stay afloat.

It's the third rise in the city's base wage since Dec. 31, 2016, when it went to $11 an hour. The latest increase is part of a plan that phases in minimum wage hikes across New York state, with amounts and effective dates varying by region and industry. It's not just a New York phenomenon, however: Minimum wages rose in 20 states with the new year, forcing businesses across the country to grapple with higher payrolls -- and compete for workers with giants like Amazon that are already offering $15 an hour.


Jon Bloostein operates six New York City restaurants that employ between 50 and 110 people each. The owner of Heartland Brewery and Houston Hall, Bloostein said the effect of the higher minimum wage on payroll across locations represents "an immense cost" to his business.


"We lost control of our largest controllable expense," he told CBS MoneyWatch. "So in order to live with that and stay in business, we're cutting hours."

[nathanbforrest45]

There was an interview on the radio today with a woman who worked in fast food and had done so for 17 years. She was still making slightly over minimum wage and thought it was wonderful the government is raising minimum wage to $15.00 an hour. The interviewer gushed all over her. My question would have been what is your problem that you are still doing the same job you were doing 17 years ago? Where is your initiative?

[Mister D]

I have to admit that NY State was very aggressive with their timeline but these hikes are not actually permanent. In 2019, the state plans on studying the economic impact to determine if they should be suspended.

[Beevee]

If the amount of food on the plate was reduced by 10%, they could probably retain the profits without a staff reduction and also benefit from a reduced rodent population at dump sites.

[Peter1469]

There was an interview on the radio today with a woman who worked in fast food and had done so for 17 years. She was still making slightly over minimum wage and thought it was wonderful the government is raising minimum wage to $15.00 an hour. The interviewer gushed all over her. My question would have been what is your problem that you are still doing the same job you were doing 17 years ago? Where is your initiative?

That is what I don't get. Who stays at or near the minimum wage for long term? I understand that some people want or need a job with flexible hours, but they are choosing to work at those wages. What about the people who don't really have a choice- because they are not worth more than minimum wage? I don't think we should subsidize mediocrity.

[Peter1469]

I have to admit that NY State was very aggressive with their timeline but these hikes are not actually permanent. In 2019, the state plans on studying the economic impact to determine if they should be suspended.

Have you seen government plans or programs cut after people get a taste of them?

[Peter1469]

If the amount of food on the plate was reduced by 10%, they could probably retain the profits without a staff reduction and also benefit from a reduced rodent population at dump sites.

Do customers want to pay the same price for 10% less? Actually in many restaurants they should cut the portion sizes by 50%. But the price as well.

[donttread]

I have to admit that NY State was very aggressive with their timeline but these hikes are not actually permanent. In 2019, the state plans on studying the economic impact to determine if they should be suspended.

That would be a $#@! storm a dem run state couldn't handle though. No way they will go backwards . Automated check out machines will be selling like crazy.

[Mister D]

Have you seen government plans or programs cut after people get a taste of them?

We'll see. I'd imagine that if the economic impact was demonstrably negative they might rethink this.

[Mister D]

That would be a $#@! storm a dem run state couldn't handle though. No way they will go backwards . Automated check out machines will be selling like crazy.

It may not actually have the impact some of you fear. We'll see.