New York City Mayor Michael Bloomberg is suing the City Council over the legality of two new laws setting a minimum wage for workers on many city-funded projects (See Complaint). The council overrode Bloomberg’s veto in June to mandate a wage of at least $10 per hour for workers at companies getting $1 million or more in city funding. Local Law 27, the Prevailing Wage Law, and Local Law 37, the Living Wage Law, cover all sorts of companies getting city subsidies or contracts, as well as landlords renting space to city agencies.
Bloomberg says he thinks the wage requirements hurt business. In Mayor v. City Council, 451114/2012, filed on July 27 in Manhattan Supreme Court, the city’s Law Department also argues that the wage hikes are illegal. City lawyers say only the state is empowered to set a minimum wage. A City Council spokeswoman says lawmakers are confident the challenge will be shot down.