In an interview with Law360, Christopher P. Maugans, a partner in Goldberg Segalla’s Employment and Labor group, discussed the concern employers have over a proposed increase in the minimum wage in New York.

The plan, if approved, would be implemented as part of the new state budget now being negotiated by lawmakers.

“They’re either going to have to give a wage increase to the current workforce to create some sort of a gap between what the new hire is going to get versus the person that’s been there for five years, or they’re going to have a huge morale issue,” Chris said, weighing in on the impact the budget could have beyond minimum wage workers.

Proposals for the minimum wage increase include either a wage hike coupled with increases to match inflation or simply indexed wage increases to match inflation with a percentage cap and additional terms. The latter of the two is the preference for employers.

“The more gradual approach, where it’s just indexing, that’s contemplated in the budget process, that’s certainly the better of the options that are presented, though I don’t know many employers that are really happy with either,” Chris said.

Given the changes to minimum wage, there is the potential for employers to be opened wider to litigation, such as the risk of errors in overtime calculations if employers use bonuses, leading to the bonuses included in the regular rate of pay to widen the gap between minimum wage and other workers.

“Any time when there’s such rapid implementation of the law annually and there are changes, there’s a risk that an employer is going to get it wrong,” Chris said.

READ THE FULL ARTICLE:

“NY Weighing Highest State Wage Floor, Worrying Employers,” Law360, April 11, 2023 [Subscription Required]

MORE ABOUT GOLDBERG SEGALLA’S CHRISTOPHER P. MAUGANS:

Christopher P. Maugans concentrates his practice in complex commercial litigation and matters involving employment and labor law. With a focus on serving both public- and private-sector clients, Chris handles matters involving discrimination claims, improper-practice charges, employee grievance arbitrations, General Municipal Law 207-c proceedings, and New York Education Law 3020-a hearings, as well as proceedings under Article 75 and Article 78 of the New York Civil Practice Law and Rules (CPLR). Chris helps clients prepare for and navigate trials, mediations, arbitrations, and hearings before the National Labor Relations Board (NLRB), Public Employment Relations Board (PERB), Equal Employment Opportunity Commission (EEOC), and the New York State Division of Human Rights (DHR). He regularly counsels clients and litigates the enforceability of restrictive covenants in employment agreements, including non-competition and non-solicitation provisions.