NY State minimum wage to increase to $8 per hour starting Dec. 31

Changes are coming to the state unemployment insurance and workers’ compensation systems, and there will be an increase in minimum wage.

Governor Andrew Cuomo announced the passage of the state budget in March, 2013, which included raises in the minimum wage to $8 per hour from $7.25, effective Dec. 31.

Previously, New York lagged behind 19 other states in minimum wage levels. By the end of 2014, the minimum wage will increase to $8.75 and then $9, by the end of 2015.

“Thanks to the persistence of the Assembly majority, this budget ensures that tens of thousands of hardworking, minimum-wage-earning New Yorkers will be receiving much-deserved and badly needed raises in each of the next two years,” Assembly Speaker Sheldon Silver said.

Reforms coming to New York State unemployment insurance include enhancements to prevent fraud and aggressively require claimants to look for work, among other improvements. Also, there will be an increase in wage bases.

Currently, employers pay unemployment insurance contributions on each worker’s earnings up to a certain point called the wage base. The current wage base for 2013 is $8,500. The wage base will be adjusted on January 1 each year and increase to $13,000 by 2026.

After 2026, the wage base will be adjusted annually on January 1 to 16 percent of the state’s average annual wage.

The workers’ compensation system is under repair as well.

The system is under a business process re-engineering, focusing on improving the system’s processes, performance management and upgrading technology.

Right now over 30 states use a national electronic standard for worker’s compensation injury reporting. New York will join this growing trend of electronic injury reporting in 2014.

The state hopes that this move will reduce paper forms and duplicate filings, provide greatly expanded access to injury and payment data, simplify and speed up case processing, and allow the workers’ compensation board to better regulate the workers’ compensation system.

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