You may have seen the news recently in regard to an increase in the minimum wage for workers at certain fast food franchises in New York State. While employees who appear ready to earn more are celebrating, there are a number of problems associated with the change that are cause for alarm.

First, we need to examine the process used to institute this minimum wage increase because it is a complete deviation from the normal practice. A three-member wage board, unilaterally created by the governor, made the recommendation to hike the minimum wage. This completely circumvents the state legislature which has always determined the minimum wage in the past.

In 2013, for example, the senate joined with the assembly and the governor to implement a phased-in minimum wage increase. The minimum hourly wage went from $7.25 to $8.00 on December 31, 2013, then to $8.75 on December 31, 2014. One final increase will take effect at the end of this year when the rate will rise to $9.00 per hour on December 31, 2015.

By raising the wage through this incremental strategy, business owners have been able to plan ahead. For many small business owners the wage increase represents a major adjustment and it is important that they are able to take the higher expense into account.