New York and New Jersey airport workers’ minimum hourly wage is set to increase gradually from $19 to $25 by the year 2032. Along with this wage hike, airport dining prices will also be raised, with consumers potentially facing an additional 3% fee on their bills as a “benefits and retention” charge for airport workers.
On Tuesday, November 12th, New York Governor Kathy Hochul, alongside New Jersey Governor Phill Murphy and the Port Authority of New York and New Jersey, announced that minimum hourly wages for workers at JFK International Airport, LaGuardia Airport, and Newark Airport will begin to rise from January 2025, with the goal of reaching $25 by 2032 from the current $19.
The proposal jointly put forward by the three parties calls for employers to implement incremental wage increases of $0.75 in January 2025, July 2025, and January 2026. Starting from January 1, 2027, the annual minimum wage increase will be linked to a three-year rolling average of the Consumer Price Index (CPI) for the Northeast region published by the U.S. Bureau of Labor Statistics, aligning with the minimum wage policies of New York and New Jersey.
According to the proposal, if the annual CPI increase by January 2032 has not reached the $25 level, the minimum hourly wage for workers at the three airports will automatically be increased to $25 by September 2032.
In order to offset additional labor costs for airport shops and restaurants, the Port Authority has also proposed modifications to the pricing policies for concessionaires operating at the airports.
The Port Authority suggests allowing airport concessionaires to charge consumers up to 15% over “street prices” for similar products, compared to the current cap of 10%.
Additionally, concessionaires will be permitted to levy a “employee benefits and retention surcharge” on consumers, not exceeding 3% of the pre-tax bill.
The Port Authority has stated that they will regularly review the pricing policies of airport concessionaires and assess feedback from the public, including customer complaints on social media. Violations of pricing policies by concessionaires will be addressed accordingly.