By Heesun Wee
CNBC, Nov 11, 2015
Gov. Andrew Cuomo's decision Tuesday to raise minimum pay for all New York state workers to $15 an hour underscores the powerful role governors and local governments can play in shaping the national wage fight.
To date, no other state has enacted a $15 public sector minimum wage. ... About 10,000 state employees will benefit from the governor's decision, and higher pay will take effect incrementally in a phase-in schedule — from year's end through 2021.
Cuomo's unique move is "exactly the kind of steps that governments and mayors can be taking right away, even as we move to raise the minimum wage for all workers through legislative or electoral means," [Connie Razza, director of strategic research at the Center for Popular Democracy] said. ...
Opinions on both sides
... Others contend boosting pay can raise employee retention and ultimately help businesses long term.
Kelly Vlahakis-Hanks is chief executive of Earth Friendly Products, the maker of the "Ecos" brand of cleaning items including laundry detergent. The value-priced brand is available at large retailers including Whole Foods, Target and Wal-Mart.
Her father founded the small business in 1967, years before consumer consciousness about such products became widespread. Earth Friendly Products has since expanded to five U.S. manufacturing plants and nearly 400 employees.
Employees who work on the production side of the business earn $17 an hour — more than double the federal minimum wage of $7.25 an hour. Vlahakis-Hanks says higher pay has helped her lift employee retention, attract quality talent, and reduce employee turnover and training costs. Some employees have been with Earth Friendly Products for about 40 years.
"People stay with us," Vlahakis-Hanks said. Current job growth has exceeded 5 percent compared to the same period last year, she added. ...
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