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N.Y. Restaurant Owners Plead for Mercy as Gov. Cuomo Tightens Screws on Wages [Min. $15/hr.]
PJ Media ^ | 01/07/2016 | Rod Kackley

Posted on 01/07/2016 8:49:23 AM PST by SeekAndFind

More than 100 restaurant owners in the state of New York are begging Gov. Andrew Cuomo (D) not to force them to pay their waiters and waitresses $15 an hour. But it's doubtful he heard them over the roar of union workers at rallies Jan. 4 supporting Cuomo's call for a statewide $15 an hour minimum wage.

Melissa Fleischut, president and CEO of the New York State Restaurant Association, can see the $15 an hour wage coming, but she's hoping for a five-year moratorium for people who make their livings on tips.

She said her organization's members would be crushed by a $15 an hour wage mandate, on top of the 50 percent increase in wages for what are known as "tipped workers" that went into effect the last day of December 2015.

The cash wage for tipped employees was raised from $5.00 to $7.50 on Dec. 31.

"The industry needs time to adjust to this dramatic increase," Fleischut said.

She warned that if Cuomo follows the Dec. 31 raise with a mandate to double wages for tipped workers, the same people Cuomo says he wants to help are going to lose their jobs.

Fleischut said restaurant owners were already looking for ways to cut back because of the Dec. 31 wage edict, like telling customers they no longer need tip servers to replacing wait staff with tablets at every table.

"It's hard to imagine any business giving half of their labor force a 50 percent raise overnight, but that's the reality the hospitality industry is facing at the moment," said Fleischut. "Any further increase will just exacerbate these problems."

American Action Forum economists Douglas Holtz-Eakin and Ben Gitis believe job losses in New York's restaurants could be just the beginning of a boomerang nightmare of unintended consequences.

They warned the state of New York could lose as least 200,000 jobs if a statewide $15 an hour minimum wage is imposed. Other economists warn the state could see close to 600,000 people thrown out of work.

But none of those scenarios is playing into Cuomo's thinking.

"We are making a fundamental difference in the lives of hundreds of thousands of workers across this state. I am proud to mark these milestones in the fight for fair pay," Cuomo said Dec. 31 as the minimum wage increased to $9 an hour for tipped workers, people who serve and cook fast food, and all other industries in the state of New York.

The minimum wage for people who work in fast-food restaurants and state government in New York will go up to $15 an hour by the end of 2018. Cuomo also wants $15 an hour to be the statewide minimum wage.

"No one who works full-time should ever be condemned to a life of poverty," he added.

Despite industry organizations pleading for mercy as the wage vise continues to squeeze their P&L statements, Cuomo made it clear in a Daily News interview that he would not back down.

He promised the minimum wage issue would be among his top legislative priorities in 2016. "The more people understand it in the state, the more they'll support it."

Cuomo's fiery speech for his definition of economic justice at the SEIU rally Jan. 4 was one of the several simultaneous events held that day. It also coincided with an online petition drive calling on the New York Legislature to raise the minimum wage for everyone in New York to $15 an hour.

Mario Cuomo Campaign for Economic Justice organizers argue 3 million people, or 36 percent of New York State residents, would be able to take larger paychecks to their banks if they were making $15 an hour. And that is the best way to "get more of our friends and neighbors out of poverty and into the middle class," according to the campaign's website.

A Quinnipiac University poll released in September 2015 showed New York State voters support the raising the minimum wage to $15 over several years by 62-35 percent.

Maurice Carroll, assistant director of the Quinnipiac University Poll, said support for the $15 an hour minimum wage is not as broad and deep as those numbers would make it appear.

The debate is split along party and ideological lines. Liberals and Democrats love it. Conservatives and Republicans don't.

Carroll said there is strong support for the proposal in every party, gender, age and regional group except Republicans. GOP voters oppose the idea 65-32 percent. Upstate voters are divided with 50 percent in favor and 47 percent opposed.

Support for Cuomo's proposal is 85-13 percent among Democrats, 59-38 percent among independent voters, 77-21 percent among New York City voters and 61-36 percent among suburban voters.

Cuomo and those who are backing the campaign named after his father are going to have their work cut out for them when it comes to lobbying the Legislature.

The New York Post reported in November 2015 that the state GOP was launching an "unprecedented campaign" to block Cuomo's proposal for a statewide $15 an hour minimum wage.

"We're the party of Main Street and this will really hit Main Street hard," said New York State GOP Chairman Ed Cox.

"It's a job and business killer," he said, "as cities around the country that have done this are starting to realize, and I think we're going to be able to have a major impact."


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: New York
KEYWORDS: cuomo; deblasio; fightfor15; minimumwage; newyork; seiu; socialism
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1 posted on 01/07/2016 8:49:23 AM PST by SeekAndFind
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To: SeekAndFind

If he/she/it thinks it’s bad now, wait until he/she/it mis-identifies a non gender specific being. $15/hr min wage would be welcome in comparison.


2 posted on 01/07/2016 8:51:50 AM PST by rktman (Enlisted in the Navy in '67 to protect folks rights to strip my rights. WTH?!)
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To: SeekAndFind

Dear NY Restaurant Owners,

How many of you voted for this mook?

Sincerely,

AAC


3 posted on 01/07/2016 8:56:21 AM PST by Army Air Corps (Four Fried Chickens and a Coke)
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To: SeekAndFind

Prediction: Kiosk sales skyrocket in NY


4 posted on 01/07/2016 8:57:21 AM PST by joshua c (Please dont feed the liberals)
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To: SeekAndFind

Give them the $15. In two years they will be screaming for $20. Then $25. If minimum wages were perfect, they would still be at 25 cents an hour, in REAL SILVER.


5 posted on 01/07/2016 8:57:52 AM PST by Ruy Dias de Bivar
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To: SeekAndFind

Why not just adjust your menu prices upward to account for this forced increase in cost? Obviously that may make you leas competitive, but if you openly advertised no tipping or max 5% tip that might offset the price increase.


6 posted on 01/07/2016 8:58:31 AM PST by USNA74
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To: SeekAndFind

It doesn’t immediately go to $15. It’s in steps....$15 in NYS in 2021...(except NYC tops out in 2018)


7 posted on 01/07/2016 9:01:36 AM PST by Sacajaweau
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To: Army Air Corps

At this point, the service in most restaurants in NY is so bad that I/we no longer go out for food.

The one thing they teach you is that if a drowning man will not listen to your commands as you attempt to save him, then let him drown and don’t let him take you with him.

This just adds to the cost, and undesirability of go out to eat.


8 posted on 01/07/2016 9:03:52 AM PST by Ouderkirk (To the left, everything must evidence that this or that strand of leftist theory is true)
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To: Ruy Dias de Bivar

The only fair ‘minimum wage’ is $0.00.


9 posted on 01/07/2016 9:07:46 AM PST by bassmaner (Hey commies: I am a' white male, and I am guilty of NOTHING! Sell your 'white guilt' elsewhere.)
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To: Ouderkirk

I rarely go out to eat any more. The food isn’t great, the prices are too high and most of the time, the service is lousy. If I want marginal food and lousy service, I can subject myself to this at home a whole lot cheaper than going out.


10 posted on 01/07/2016 9:07:52 AM PST by Qiviut (In Islam you have to die for Allah. The God I worship died for me. [Franklin Graham])
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To: SeekAndFind

You couldn’t pay me to live in NY state.


11 posted on 01/07/2016 9:11:40 AM PST by Extremely Extreme Extremist
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To: SeekAndFind

It’s a job and business killer,


12 posted on 01/07/2016 9:15:24 AM PST by MarvinStinson
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To: SeekAndFind

Heading for the Soviet Union. Complete government control of the means of production, and of pay rates. Will lead to economic ruin here, as it did in the Soviet Union.


13 posted on 01/07/2016 9:16:04 AM PST by I want the USA back (The further a society drifts from the truth, the more it will hate those who speak it. Orwell.)
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To: Ouderkirk

“At this point, the service in most restaurants in NY is so bad that I/we no longer go out for food.”

Which means getting rid of servers and ordering via tablets on each table should actually improve things a bit, hey?


14 posted on 01/07/2016 9:20:24 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: SeekAndFind

You funded and voted for him. Deal with it.

15 posted on 01/07/2016 9:23:36 AM PST by Snickering Hound
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To: Army Air Corps

Gov. Cuomo: born on third - thinks he hit a triple...


16 posted on 01/07/2016 9:24:40 AM PST by GOPJ (Are Hollywood liberal elties like Ron Burkle paying John Kasich to 'rough up' Donald Trump?)
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To: SeekAndFind

I LOVE IT when liberals and progressives have to live under the laws they voted for...

Sorry - no exemptions for you this time.


17 posted on 01/07/2016 9:44:12 AM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: SeekAndFind

No problem; work the most productive employees harder and longer and fire the rest.


18 posted on 01/07/2016 10:39:02 AM PST by JimRed (Excise the cancer before it kills us; feed & water the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: Ruy Dias de Bivar

We need some city or state to make the minimum wage $100 an hour.

Then grab the popcorn and watch what happens next.

Restaurants are a luxury item that operates on low margins—and many of them fail within a few years.

We can live without them—can they live without us as customers?


19 posted on 01/07/2016 11:00:35 AM PST by cgbg (Epistemology is not a spectator sport.)
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To: Snickering Hound

lol!


20 posted on 01/07/2016 11:10:01 AM PST by txhurl
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