Governor Andrew Cuomo signed into law in the 2011-12 budget a mandate that requires employers who receive funding from NY State to increase the minimum wage to $10 per hour plus benefits or $11.50 without benefits. This mandate will affect more than 66,000 downstate workers and employers and will have a significant impact for home health care workers.
Here’s what the new law in New York City requires:
03/01/2012 – 02/28/2013: $9.00 per hour plus $1.35 without health benefits
03/01/2013- 02/28/2014: $9.50 per hour plus $1.43 without health benefits
Beginning 03/01/2014: $10.00 per hour plus $1.50 without health benefits
This new law has created controversy among many public officials. Recently former Mayor Ed Koch was quoted in the New York Times saying this: “I would support a national law creating a minimum wage of $10 plus benefits or $11.50 per hour without benefits, or any other reasonable increase for those at the minimum wage level. But I would do so only if it applied to all states, not simply to New York City.” Other officials have criticized the law saying it will drive New York employers out of New York state.
One solution for employers is to provide workers with health benefits in the form of Mini Medical Benefits or Limited Medical Plans. Our company has partner with First National Administrators, a health insurance brokerage firm and HighMark a group insurance provider to offer a cost savings solution to the “Living Wage Mandate.”
The Limited Medical Plan Solution can create a significant savings for employers by providing much needed medial insurance for home health care workers instead of offering them a wage increase. The savings in FICA tax alone could amount to thousands of dollars per year depending on how many workers are on payroll. You can download our sample estimated savings flyer and see for yourself.
If you would like more information or a free customized quote, contact our office at: 914-633-1717