Managing Increased Costs Under the New Minimum Wage and Avoiding Legal Liability

4 Min Read By Jeffrey S. Horton Thomas, Esq.

New York and California restaurant operators are dealing with serious challenges posed by recent minimum wage hikes and further increases coming down the pike. Payroll as an operating expense is on a steep trajectory upward for at least the next several years. How operators manage the challenges – whether and how operators cut the number of employees on payroll or the number of hours worked each pay period – carries serious legal risks.

The New Wage Scale – Assault on Slim Profit MarginsNo later than the end of this year, the minimum wage in New York City will increase from $9 to $11 per hour – a 22 percent jump. The law, signed by Governor Cuomo on April 4, mandates further increases that will lift the minimum wage throughout the State of New York in a few years to $15 per hour.

In California, the state minimum wage increased in January to $10 per hour.  On January 1 next year, the minimum will increase again and annually thereafter until it reaches $15 per hour in 2022.

To…