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Minimum Wage Legislation Includes Reimbursement Credit

Minimum Wage Legislation Includes Reimbursement Credit

ALBANY, N.Y. (AP) - A provision buried deep in New York's tentative budget shows taxpayers will get part of the bill for raising the minimum wage.

The deal to raise the state minimum wage from $7.25 an hour to $9 by 2015 includes a "minimum wage reimbursement credit" for employers. It would make up some of the wage difference for seasonal workers ages 16 to 19 and still in school.

Frank Mauro of the Fiscal Policy Institute fears adults could be replaced by teenagers so employers could claim the credit. He says a safeguard would be hard to enforce.

He also says the credit would apply to small businesses as well as major chains.

The total cost of the credit won't be made public until after the budget is enacted.