New Yorkers will ring in the new year with another minimum wage hike, as hourly pay rises to $17 in New York City, Westchester and Long Island, and $16 across the rest of the state beginning Jan. 1.

The increase marks the third minimum-wage hike in three years, part of a deal struck by Gov. Kathy Hochul and Democratic lawmakers that began in 2024. Under the agreement, future increases starting in 2027 will be automatically tied to inflation, locking in annual hikes based on the Consumer Price Index.

New York’s move comes amid a nationwide wave of wage increases. At least 22 states are raising their minimum wages in 2026, affecting more than 8.3 million workers, according to the Economic Policy Institute. The increases further widen the gap with the federal minimum wage, which has remained frozen at $7.25 an hour since 2009.

Supporters argue the hikes are long overdue, noting that inflation has eroded the buying power of wages and that $15 an hour — once a major labor milestone — no longer goes far in high-cost states like New York.

But business owners warn the repeated increases could come at a cost. Small employers, particularly independent restaurants and contractors, say higher labor mandates are squeezing already-thin margins and accelerating automation and hiring freezes.

“When entry-level labor becomes more expensive, the first thing that disappears is opportunity,” said Dean Lyulkin, CEO of a small-business lending firm. He warned that younger and inexperienced workers are most at risk as employers cut hours, reduce hiring, or replace jobs with technology.

(YWN World Headquarters – NYC)