In an effort to nearly double the city’s minimum wage to $30 an hour by 2030, New York City Councilmember Sandy Nurse recently introduced the “$30 for Our City” Act.
With a crowd of supporters cheering her on as she announced the bill on March 10 from the steps of City Hall, Nurse explained that there needs to be an increase in the minimum wage because of the growing affordability crisis in the nation’s most expensive city.
New York City’s current minimum wage is $17 an hour for all employers, including tipped workers who receive a base cash wage plus tips. Tipped service employees are paid $14.15 in cash wages with a $2.85 tip credit, while tipped food service workers must earn at least $11.35 in cash wages with a $5.65 tip credit. Starting in 2027, the minimum wage is set to increase annually based on the Consumer Price Index for the Northeast Region.
Councilmember Nurse, labor advocates, and a coalition of supporters under the Raise Up NY banner argue that current wages are not keeping pace with rising rents, grocery prices, and childcare costs.
“New York City’s minimum wage is a poverty wage, which at $17 an hour, leaves over 1 million workers barely surviving on $500 a week,” Nurse stated. “That’s why I’m introducing the $30 for Our City Act, to raise the minimum wage to $30 for every worker, with automatic cost-of-living increases after 2030. NYC workers keep this city. They deserve to thrive, support their families, and enjoy the city they built.”
Nurses’ legislation creates a phased minimum wage increase, initially based on a business’s number of employees. For businesses with more than 500 employees — including related franchisees — wages would increase to $20 per hour in 2027, then $23 in 2028, $26 in 2029, and reach $30 by 2030.
Smaller employers, with 500 or fewer employees, would see a slower increase: $19 in 2027, $21.50 in 2028, $24 in 2029, $27 in 2030, $29 in 2031, and ultimately $30 in 2032. After that, the wage floor would be adjusted each year to keep pace with inflation.
Raise Up NY, a coalition of labor unions, community groups, workers’ rights organizations, and small businesses, support Nurses’ bill. They point to research like the recent report from the poverty-fighting Robin Hood Foundation, which found that one in four New Yorkers currently lives in poverty, and half of working residents struggle to afford basic needs.
There is also a Marist poll, which suggests that because of the high cost of living, one in three New Yorkers plans to leave the state in the next five years. “Raising the minimum wage must be a part of any serious conversation about combating the affordability crisis,” said Brooklyn Borough President Antonio Reynoso, who added that “costs are skyrocketing, and the current minimum wage is simply not enough for New Yorkers to make ends meet.”
Councilmember Crystal Hudson agreed and noted that “Too many of the workers who keep New York City running are struggling to afford the very city they sustain. Raising the minimum wage is about ensuring working people can afford to stay in this city and support their families.”
Though Nurses’ bill even has support from some business owners, not everyone is convinced that the $30 minimum-wage hike will be beneficial. The non-profit Employment Policies Institute (EPI) argues that the proposal could have far-reaching negative consequences for small businesses, entry-level jobs, and inflation.
“A $30 minimum wage is irresponsible and would backfire on local businesses and workers,” EPI’s research director, Rebekah Paxton, told the Amsterdam News. “If passed, New York City would have the highest wage mandate in the nation, soaring above similar drastic wage hikes elsewhere that have spiked inflation, slashed youth and entry-level jobs, and spurred more automation of employee tasks.”
Paxton emphasized that while EPI supports workers earning higher wages, “this is a drastic wage change that sets businesses — particularly small ones, but not limited to small businesses — in a position where they have to drastically adjust to make sure that they can keep up with those rising labor costs.”
EPI points to recent experiences in California, where some reports show that the $20 minimum wage for fast-food workers led to a 14% increase in food prices within a year and to the loss of over 19,000 jobs in the sector.
According to Paxton, “There ends up being this trade-off that does hurt a significant portion of workers. If businesses can’t raise prices to keep up with labor costs, they may have to lay off workers or reduce their schedules. Maybe workers are making a higher hourly wage, but they’re not earning as much overall. Or businesses have to shut down, and that takes away all of those employment opportunities.”
She warned that higher wage mandates can accelerate automation, citing a National Bureau of Economic Research study that estimates a $1 increase in the federal minimum wage increases the likelihood of robot adoption by up to 11%.
Paxton also noted, “There is evidence to suggest that people who come into minimum wage jobs actually do receive a raise within one to 12 months of being on the job. It’s not like every minimum-wage worker is stuck at that rate forever. Generally, studies have confirmed that minimum wages aren’t the most efficient tool for pulling people out of poverty or alleviating cost-of-living pressures because they can also contribute to increasing the cost of living.”
EPI is pushing for alternatives, such as earned income tax credits and child tax credits, that supplement wages without placing the burden squarely on businesses.
Supporters of the “$30 for Our City” Act are inspired by cities like Seattle, San Francisco, and Denver, which have already put aggressive minimum wage measures in place. They argue that New York City, once a leader in wage standards, now lags behind these high-cost-of-living cities.
“No New Yorker working full time should live in poverty,” Councilmember Shahana Hanif asserted. “As the cost of living continues to rise, our wages must rise with it. Raising the minimum wage to $30 by 2030 is about fairness, stability, and making sure working-class New Yorkers can stay in the communities they helped build.”