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November 13, 2015

N.Y. State Minimum-Wage Hike Could Squeeze Charities

Nonprofits in New York State could see a considerable financial squeeze under Gov. Andrew Cuomo's proposal to raise the minimum wage to $15 an hour, the Albany Times Union writes.

New York's nonprofit sector employs an estimated 550,000 people, 18 percent of the state's work force. Eighty-three percent of members of the New York Council of Nonprofits have employees who earn less than the proposed wage floor, according to a survey by the umbrella group. Doug Sauer, the council's chief executive, said groups would likely look at mergers and consolidations to meet the new financial demand.

Charities already face stagnant levels of government aid, stricter credential requirements for their staffs, and increasing mandates to take over services formerly provided by state agencies, according to the Times-Union. Mr. Cuomo's proposal to increase the wage floor from $9 to $15 an hour in stages through 2021 requires legislative approval.