State Minimum Wage Increases Show State Values Work
As of January 1, New York State’s minimum wage for Upstate is $16.00 up from $15.50.
New York State’s minimum wage was the same as the Federal minimum wage of $7.25 as recently as 2013, 13 years ago. Beginning in 2014, the State Legislature put in place increases in the State minimum wage that has brought us to $16 now.
The United States Congress, in contrast, has not raised the $7.25 Federal minimum wage since 2009, 17 years ago.
In the face of Federal inaction, at least 30 states have enacted state minimum wages above the Federal $7.25. That means, however, that 20 states, including our neighbor, Pennsylvania, only require employers in to pay workers $7.25 /hr.
The United States had no Federal minimum wage until Congress passed and President Franklin D. Roosevelt signed the Fair Labor Standards Act of 1938.
In 2026, as was true in 1938, there are still those who oppose any minimum wage for workers. In 1938, 89 House of Representative members voted against establishing the first minimum wage.
Some continue to argue that individuals should be free to work for any amount of pay. They argue for a totally “free market” for labor. Some also argue that raising the minimum wage results in job losses.
Others, on the other hand, point out that while America has a tremendously successful market economy, we as a Nation have put many limits on markets for over 100 years. Our government regulates the safety of food, drugs, automobiles, airplanes and workplaces. Government licenses doctors, lawyers, dentists, pharmacists, architects, engineers, stockbrokers. Insurance agents and certified public accountants to protect us as consumers from a totally unregulated free market for these services.
Others point out that any job losses from raising the minimum wage result from employers becoming more efficient in what they do. This is called productivity increases. The only real source of wealth growth long term is from productivity increases.
Assuming that $7.25 was a reasonable Federal minimum wage in 2009, adjusted for inflation the Federal Minimum wage would be above $11.00 now.
While the Federal minimum wage affecting the lowest paid workers in America has not been adjusted for inflation, many benefits for wealthy Americans have been adjusted upward for inflation.
In 2009, for example, the Federal government did not tax estates up to $3,500,000. Upon the death of a wealthy person, that estate could leave up to $3,500,000 ($7,000,000 for a wife and husband) to the decedent’s children without owing a dime in Federal Estate Tax.
In 2026, upon the death of a wealthy person, that estate can now leave up to $15,000,000 ($30,000,000 for a wife and husband) without owing a dime of Federal Estate Tax.
In 2026, the $15,000,000 tax free estate amount is up by over 300% since 2009.
In 2026, the $7.25 Federal minimum wage is up by 0% since 2009.
The justification for Congress increasing tax free estates since 2009 for the wealthiest Americans but giving the lowest paid workers in America no increase in the minimum wage is not clear.
Ever since 1996 when President Clinton, a Democrat, and Speaker of the House Gingrich, a Republican, joined to create Welfare Reform, American politicians claim to value work over welfare. The failure for 17 years to raise the Federal minimum wage for our Country’s lowest paid workers seems in conflict with that commitment.
As one who believes in work over welfare, as a retired City Drug Court Judge who urged Drug Court participants to get a job as part of graduating from Drug Court, and who agrees with Martin Luther’s view 500 years ago that all honest work is a calling and all callings please God, someone who works full time in the second quarter of the 21st Century should not live in poverty.
New York State’s minimum wage at $16 /hr. appears to value work over welfare. Unfortunately, the income of residents of Chautauqua County in recent years has been getting poorer relative to the average income in New York and in the United States. We should, therefore, celebrate that the increase in New York’s minimum wage may lift the income of some workers in Chautauqua County.
Major national retailers would not find New York’s minimum wage to be excessive. Sam’s Club now has a $16/hr. minimum wage. Target has a starting wage ranging between $15 to $24 per hour. In some states, Walmart has a starting wage of $17/hr.
Those New York political and business leaders who fear New York’s relatively high minimum wage is bad for business should join an effort to get Congress to finally raise the Federal minimum wage of $7.25. The 1970 Federal minimum wage under Republican President Nixon, adjusted for inflation, for example, would justify a Federal minimum wage of at least $13/hr.
It is time for Congress to care more for the working poor in America.
Fred Larson is a graduate of the Princeton University Woodrow Wilson School of Public and International Affairs and Yale Law School, is a retired Jamestown City Court judge and a current member of the Chautauqua County Legislature.
