Beverage, snack shops included in fast-food pay hike
ALBANY – More than 100 chain restaurants and up to 200,000 employees could be affected by a proposed pay bump for fast-food workers, according to a report Friday from a state board.
The state Fast Food Wage Board's push for a $15 hourly minimum wage for fast-food employees would apply to more than traditional industry giants like McDonald's, Burger King and Wendy's.
An appendix to its final report listed 137 national chains that may be affected, including Starbucks, Dunkin Donuts and Carvel. Also included are Subway, Buffalo Wild Wings, pizza chains like Dominos and Pizza Hut and snack outlets like Auntie Anne's and Ben & Jerry's.
The wage board publicly released its final report and recommendations Friday afternoon, four days after the three-member panel -- led by Buffalo Mayor Byron Brown -- approved the report at a public meeting.
The 23-page report lays out the board's rationale for recommending a 70 percent wage bump for fast-food employees, which the panel first proposed last week. If approved by state Acting Labor Commissioner Mario Musolino, minimum wage for fast-food employees would incrementally increase to $15 an hour statewide by mid-2021.
Now, the report will be open to a 15-day public comment period before Musolino can accept, modify or reject the proposal.
"There can be little doubt, based on the volume and consistency of testimony from fast-food workers and data provided by experts, that wages in this industry are insufficient," the board wrote in the report.
The report recommends adopting a broad definition of "fast-food establishment," which would include a broader array of national chains than traditional burger-and-fry shops.
If the definition is approved, the wage hike would apply to chains with more than 30 outlets nationwide whose "primary purpose" is serving food or drink items and where patrons pay at a counter before eating.
The list of chains, which is tacked on as an appendix, is not official, the report notes. Chains that are on the list may not qualify, while some that aren't may be added, according to the document.
"The list is provided to inform the public and others by illustrating the range and scope of establishments that the Wage Board reasonably anticipated may satisfy the proposed theshold of 30 establishments nationwide, based on data submitted to the Wage Board," the report states.
The broad definition drew criticism from the New York State Restaurant Association, which called the wage board process "rushed and half-thought-out."
"The definition of 'fast food establishment' will force many small businesses, some with just few locations in New York, to cope with huge increases in labor costs," said Jay Holland, the group's government affairs coordinator. "These businesses operate on razor-thin profit margins and will likely have to raise prices and look for ways to save on labor to survive."
Labor unions and fast-food employees, meanwhile, have cheered the board's recommendations, saying they will go a long way toward improving the quality of life for underpaid employees.
Gov. Andrew Cuomo, a Democrat, supports a pay hike. He appointed Musolino to his position.
"A higher wage benefits us all by providing a kick-start to our economic engine, leading to job creation in both the fast-food industry and other sectors as well," Mario Cilento, president of the state AFL-CIO, said in a statement last week.
The lag between the board's approval of the report Monday and its public release was questioned by Robert Freeman, who heads the state Committee on Open Government. The state Open Meetings Law requires state agencies to release documents scheduled to be discussed at public meetings to the extent possible.
On Monday, a spokesman for the labor department said the delay in releasing the report was to allow the three members of the board to sign the report. They had been in separate cities and connected by teleconference for Monday's meeting.
Follow Jon Campbell on Twitter @JonCampbellGAN.
How to comment
The release of the report Friday started a 15-day clock to submit public comments to the state Department of Labor. Objections to the report can be submitted to wageboard@labor.ny.gov or NYS Dept. of Labor Wage Board Objections, Building 12 Room 586, State Office Campus, Albany, NY 12240.