A $33 Burger? As New York City Eyes $30 Minimum Wage, Restaurants Brace for Impact

The proposal would eliminate the tipped-wage credit and send labor costs skyrocketing in an industry notorious for its tight margins.

Zohran Mamdani rode to victory as New York City's mayor in part due to his audacious campaign promises around freezing the rent and offering free bus service to Big Apple residents. But perhaps no campaign promise of Mamdani's was as bold as his "$30 by '30" plan, which called for increasing the city's minimum wage to $30 by 2030.

Now that Mamdani is in office, New York City Council members have introduced a bill to turn $30 by '30 from a catchy campaign slogan into an economic reality.

But while the top-line number of $30 has received most of the attention, the fine print in the legislation may be even more alarming: It would eliminate what's known as the tipped-wage credit for restaurants in NYC, meaning that mom-and-pop restaurants—some of the city's smallest businesses—would find themselves on the hook for paying workers $30 an hour. Restauranteurs around the city are sounding the alarm, warning that the bill could pose a dire threat to NYC's famed dining scene.

Continue reading the entire piece here at Reason

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C. Jarrett Dieterle is a legal policy fellow for the Manhattan Institute.