New York State Senate Republican Chief Rob Ortt and members of the Senate Republican Convention at present known as in a letter to Gov. Andrew Cuomo for a pause to the minimal wage will increase on Lengthy Island, Westchester, and areas exterior of New York Metropolis on Dec. 31.
Small and medium-sized companies throughout New York state proceed to face unprecedented challenges this 12 months, and are struggling to maintain their doorways open whereas conserving their workers on the payroll. So as to preserve workers and clients secure, these struggling companies have made important investments, however they’re barely making it.
“Our small companies are hanging on by a thread and with a purpose to assist companies keep open and preserve all of their workers, we can’t add any extra monetary hardship right now. The Governor has the ability to briefly pause minimal wage will increase and we urge him to take action till the tip of the pandemic. We are not looking for our small companies to make the troublesome selection of shedding staff or closing their doorways as a result of this turns into the ultimate straw through the monetary fragility of the pandemic,” mentioned Ortt.
“New York state is going through the worst financial disaster for the reason that Nice Recession. 1000’s of small companies have closed and thousands and thousands of New Yorkers have misplaced their jobs for the reason that begin of the pandemic. A minimal wage enhance proper now will solely add extra casualties to those lists and supply yet another impediment to our financial restoration,” mentioned Sen. George Borrello, R-Sundown Bay, a member of the Senate Committee on Commerce, Financial Improvement and Small Enterprise and small enterprise proprietor. “I urge the governor to make use of his authority to briefly droop this enhance and spare our small companies, residents and state from additional financial harm.”
The Nationwide Federation of Unbiased Companies (NFIB) discovered that 90% of small companies which obtained Paycheck Safety Program (PPP) loans have fully spent down these funds and are prepared to start the mortgage forgiveness course of. The federal mortgage program was created to maintain workers on the payroll, however even with this help and different packages, NFIB says 20% of small companies consider they’ll shut down inside six months. About 19% consider they’ll shut inside a 12 months.
The scheduled enhance to the minimal wage might make this disaster worse. However, the regulation permits for the momentary suspension of the will increase based mostly on a report and suggestion from the Governor’s Director of Funds. Suspending the will increase till small and mid-sized companies are on a sturdy monetary footing post-pandemic will save jobs throughout the state.
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