Port Authority proposes minimum wage increase for airport workers

Matthew Fazelpoor//November 13, 2024//

Shown is Terminal B's current interior at Newark Liberty International Airport.

Shown is Terminal B's current interior at Newark Liberty International Airport. - PROVIDED BY PORT AUTHORITY OF NEW YORK AND NEW JERSEY

Shown is Terminal B's current interior at Newark Liberty International Airport.

Shown is Terminal B's current interior at Newark Liberty International Airport. - PROVIDED BY PORT AUTHORITY OF NEW YORK AND NEW JERSEY

Port Authority proposes minimum wage increase for airport workers

Matthew Fazelpoor//November 13, 2024//

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Gov. Phil Murphy, Gov. Kathy Hochul, and the Port Authority of New York and New Jersey announced Nov. 12 a new minimum wage proposal for area airport workers.

The plan would provide annual increases for thousands of workers at Newark Liberty International, John F. Kennedy International and LaGuardia airports, starting this January.

In 2018, the agency adopted an expanded minimum wage policy that brought the of airport workers to a minimum of $19 per hour as of last September. Further increases, though, require additional board action. The proposal features three upfront increases of $0.75 in January 2025, July 2025 and January 2026.

Beginning Jan. 1, 2027, annual increases would be tied to inflation through the Consumer Price Index (CPI) three-year moving average for the Northeast region. That feature is consistent with minimum wage policies in both New Jersey and New York.

The proposal also calls for the minimum wage to automatically increase to $25 in September 2032 — if annual CPI increases have not yet reached that level by January 2032.

“Our region’s airport system serves as one of the nation’s largest distribution and transportation hubs, but it is only as efficient as the men and women who work each day to keep operations running smoothly,” said Murphy. “Airport work is a difficult and demanding job that deserves our recognition and our thanks, which is why I am pleased with today’s proposed per hour wage increases and looking forward to seeing them approved.”

NJ minimum wage to increase in 2025 

After passing the $15 minimum wage threshold to start 2024, the New Jersey Department of Labor & Workforce Development said the rate will increase $0.36 per hour for most employees in the new year. Find out more.

“Today, we are taking a significant step forward in ensuring that the hardworking individuals who serve in the region’s airports are paid fairly and equitably for their contributions,” said Hochul. “This proposal guarantees annual wage increases tied to the cost of living – providing workers with the stability they need to thrive, while ensuring their pay rises alongside the economy.”

Other key particulars of the proposal include:
  • To offset the added cost to businesses operating stores and restaurants at these airports, the Port Authority proposed a revision to concession pricing regulations that would allow concessionaires to charge prices at a level not to exceed 15% of the local, off-airport “street prices” for comparable products. The current policy caps the figure at 10%, which officials say is in line with other U.S. airports
  • Port Authority will also allow airport concessionaires to add an employee benefits and retention surcharge not to exceed 3% of a customer’s pre-tax bill

 

Officials say the wage increase is critical in helping attract and retain more skilled labor to airport businesses. As a result, that leads to improved customer experiences within the airports, they said.

On April 22, 2024, officials from the Port Authority of New York and New Jersey – including Executive Director Rick Cotton (speaking) and Chairman Kevin O'Toole (right) – celebrated the recognition of Newark Liberty International Airport's new Terminal A as the world's best new airport terminal by global airport evaluation firm Skytrax.
On April 22, 2024, officials from the – including Executive Director Rick Cotton (speaking) and Chairman Kevin O’Toole (right) – celebrated the recognition of Newark Liberty International Airport’s new Terminal A as the world’s best new airport terminal by global airport evaluation firm Skytrax. – PROVIDED BY

“Our airports serve as international front doors for this region, as well as engines for economic opportunities benefitting the communities nearby,” said Port Authority Chairman Kevin O’Toole. “Consistent and planned wage increases for airport workers improve morale and productivity as well as the quality of service for millions of passengers who use our airports every year.”

“The proposal we put forward today reflects our recognition and appreciation for the airport employees who work hard to look out for tens of millions of travelers at our region’s airports,” said Port Authority Executive Director Rick Cotton. “Ensuring livable wages will improve worker satisfaction and increase staff retention, in turn enhancing customer service and advancing our goal of a world-class airport experience – from curb to concession to gate.”

The Port Authority opened a 30-day public comment period. The Board of Commissioners will receive submitted remarks. It plans to take action on the proposal at its Dec. 12 meeting.