N.Y. board upholds $15 fast-food wage

ALBANY - A state board rejected a challenge to New York’s minimum-wage boost for fast-food workers, setting the stage for restaurant owners to take their battle to court.

In a decision issued Wednesday, the Industrial Board of Appeals unanimously ruled against the National Restaurant Association, a major national trade group that had appealed the state’s plan to gradually increase the minimum pay rate for fast-food employees to $15-an-hour by July 2021.

The appeals board — which is appointed by the governor — rejected every argument advanced by the trade group, including its contention that the makeup of the state’s three-member Fast Food Wage Board flouted state law.

“We do not find that the appointment of the 2015 fast food wage board was improperly constituted or otherwise contrary to law,” the four-member appeals board wrote in its decision.

Cuomo’s administration first created the Fast Food Wage Board in May, taking advantage of a portion of law that allows the state’s labor commissioner to convene a panel to investigate the effects of low wages in a particular industry.

From there, the wage board recommended a schedule to increase the minimum wage for employees of fast-food restaurants with more than 30 outlets nationwide, culminating with the $15-an-hour wage by 2018 in New York City and 2021 in the rest of the state.

Acting Labor Commissioner Mario Musolino accepted the recommendation in September, leading to the challenge from the National Restaurant Association.

The restaurant organization’s appeal raised a number of legal arguments, including issues with the makeup of the Fast Food Wage Board, which was led by Buffalo Mayor Byron Brown.

In particular, the appeal claimed the appointment of Kevin Ryan, founder of online retailer Gilt Groupe, was illegal. Ryan was chosen as the employers’ representative on the board, despite his lack of restaurant experience.

Ultimately, the appeals board — a four-member group that includes former U.S. Rep. Michael Arcuri — disagreed.

“While we may agree with the petitioner that Mr. Ryan seems an unlikely choice as the employer’s representative to a fast food wage board, the statute does not require the employer’s representative to be an employer in the specific occupation under investigation or in any other occupation,” according to the board’s decision.

New York’s hourly minimum wage is currently $8.75 and scheduled to increase to $9 on Dec. 31. For fast-food workers, the rate will be $10.50 in New York City and $9.75 for the rest of the state at the end of the month, with further incremental increases coming over five years.

In a statement, the National Restaurant Association said the organization plans on taking the battle to court.

“We are committed to helping the restaurant community continue to grow and create jobs across the state and plan to take legal action against this arbitrary mandate which is contrary to law,” the statement read.

Cuomo, who has called for an across-the-board $15 minimum wage for all employees, praised the appeals board’s decision, calling it a “tremendous victory for working men and women across New York.”

JCAMPBELL1@gannett.com

Twitter.com/JonCampbellGAN