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NY Fast-Food Wage Hike Gets More Legal Heat

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A prominent franchise group submitted a legal brief Monday supporting a lawsuit challenging the state of New York for enacting a $15 minimum wage for fast-food workers.

The International Franchise Association (IFA) argued in its legal brief that industry-specific minimum wage discriminates against business owners. The National Restaurant Association first announced the lawsuit Dec. 9 after having its petition rejected by the New York Industrial Board of Appeals. The National Federation for Independent Business also joined the legal brief in support of the lawsuit.

“Applying a new mandatory minimum wage increase to a narrow group of businesses significantly violates both the U.S. Constitution as well as fundamentals tenants of fairness,” IFA President Robert Cresanti said. “It creates an un-level playing field for owners who provide important entry level jobs and valuable training for millions of workers across the state of New York.”

The Fast Food Wage Board was formed May 20 to study and make policy recommendations, and gives Gov. Andrew Cuomo the ability to bypass the state legislature to initiate industry-specific minimum wage increases. The decision will gradually increase the minimum wage to $15 an hour for fast-food workers.

“If Governor Cuomo wishes to advance a wage increase, it should cover all of New York’s businesses,” Cresanti added. “Not just a select few.”

At the moment, New York’s minimum wage is $9.00 an hour. Cuomo announced Sept. 10 a proposal to raise the minimum wage statewide, it would gradually bring the minimum wage to $15 in New York City by 2018 and statewide by 2021. Unlike industry specific increases, the governor can’t convene a board to institute a statewide increase.

Cuomo has also unilaterally raised wages for state university workers and state employees. Additionally, New York City Mayor Bill de Blasio announced Jan. 6 a plan to raise the minimum wage to $15 an hour for all city workers. New York could become the first state with a $15 minimum wage, but a handful of other states are also trying to be the first.

The minimum wage crusade has already mounted an offensive on both sides. The Coalition to Save New York Restaurants was formed specifically to combat the industry specific increase. IFA is one of a list of members belonging to the coalition. Labor unions, however, have been at the forefront is supporting the mandate through rallies and media marketing campaigns.

Supporters say the $15 minimum wage will help the poor by allowing them to more easily afford basic necessities while critics say it may actually hurt the poor by limiting job opportunities.

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