Buffalo, N.Y. (WBEN) - The price of everything in New York State continues to rise, including the cost to keep an employee. Starting next year, the minimum wage in Western New York will be $15 an hour, an 80 cent increase.
And although most fast food restaurants and local businesses are paying well above minimum wage to keep up with inflation, some local businesses say they will definitely be feeling the pinch as New York State continues to raise the minimum wage.
"Everytime they raise it, it costs us not only the additional wages, but also benefits and taxes and things like that," said Brian Kuzmierski, owner of Market in the Square in West Seneca and North Tonawanda. "It impacts us, detrimentally, exponentially as far as payroll and payroll taxes."
"It's just a ripple effect is what I call it," said Mark Ebeling, owner of Danny's South. "Once one thing goes up, everything goes up, you know? The next thing that is going up is the gas, electric and water."
Some restaurants say the minimum wage increase will not have much impact of their business going forward.
"It won't affect us at all. We've been paying well over minimum for the last three, four years. The restaurant business is a tough business and we believe in paying our people what they're worth and I think they're worth more than minimum wage. So I like to think that we pay a good dollar and we get a good employee in return," says Chef's Restaurant Co-owner Lou Billittier Jr.
Tipped food service workers will now go up to $10 an hour starting January 1, 2024, including $5 an hour expected in tips.
Ebeling says it's not uncommon for servers now to be making about $25-$30 an hour on a slow night. He says the minimum wage increase cost will likely be passed on to consumers.
"It's just [going to] be passed on to the consumer like everything else you know? We haven't raised our prices yet but we'll go over the books and everything like that and see what's got to be adjusted, we can't do an all out complete menu raise but you can do it here and there gradually."
As part of the FY 2024 Budget, Governor Hochul secured an agreement with the New York State legislature to increase New York’s minimum wage through 2026 and index it to inflation beginning in 2027. After the initial increase, the minimum wage will increase by $0.50 in 2025 and 2026. In 2027, the minimum wage will increase annually at a rate determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.