Gov. Murphy, Gov. Hochul and Port Authority of New York and New Jersey announce proposal for annual minimum wage increases for airport workers tied to inflation

NEW JERSEY – Governors Phil Murphy of New Jersey and Kathy Hochul of New York announced a proposal from the Port Authority of New York & New Jersey on Tuesday to expand the minimum wage policy at John F. Kennedy International, LaGuardia, and Newark Liberty International airports.

The proposal calls for annual wage increases for thousands of airport workers starting in January 2025, with automatic adjustments tied to the regional cost of living, in line with the minimum wage policies of both New York and New Jersey.

The Port Authority Board of Commissioners last adopted an expanded minimum wage policy in 2018, which raised airport workers’ wages to a minimum of $19 per hour as of September 2023. However, that policy did not include automatic increases without further Board action.

“Our region’s airport system is one of the nation’s largest transportation and distribution hubs, but it is only as efficient as the men and women who work every day to keep operations running smoothly,” Governor Murphy said. “Airport work is difficult and demanding, and these workers deserve our recognition and thanks. That’s why I am pleased with today’s proposal for per-hour wage increases and look forward to seeing them approved.”

“Today, we are taking a significant step forward to ensure the hardworking individuals at our region’s airports are paid fairly for their contributions,” Governor Hochul said. “This proposal guarantees annual wage increases tied to the cost of living, offering workers the stability they need to thrive while ensuring their pay rises alongside the economy. I will also introduce an amendment to the Healthy Terminals Act next year to improve benefits for these workers. This is how we build a fairer, stronger New York for all.”

The new proposal includes three upfront increases of $0.75 in January 2025, July 2025, and January 2026. Beginning on January 1, 2027, annual increases will be tied to the U.S. Bureau of Labor Statistics’ Consumer Price Index (CPI) three-year moving average for the Northeast region, consistent with the minimum wage policies in both states. The proposal also includes an automatic wage increase to $25 per hour in January 2032, if that level has not already been reached through the annual CPI adjustments.

The proposed wage increase for airport workers is expected to help attract and retain skilled labor, leading to improved customer experiences within the airports. A fairly compensated workforce reduces turnover, fostering a well-trained and experienced staff that can provide stable operations and an important security presence. The Port Authority has also noted significant improvements in customer satisfaction following the minimum wage increases that began in 2018.

“Our airports serve as international gateways for the region and as engines of economic opportunity for surrounding communities,” said Port Authority Chairman Kevin O’Toole. “Consistent, planned wage increases improve worker morale and productivity, which in turn enhances the quality of service for the millions of passengers who use our airports each year.”

“The proposal we put forward today reflects our recognition of the essential role airport employees play in ensuring the smooth operation of our airports,” said Port Authority Executive Director Rick Cotton. “By ensuring livable wages, we improve worker satisfaction and retention, which ultimately enhances customer service and furthers our goal of delivering a world-class airport experience.”

To offset the added costs for businesses operating in stores and restaurants at Port Authority airports, the agency has also proposed a revision to its concession pricing policy. The revised policy would allow concessionaires to charge prices no more than 15 percent above local “street prices” for comparable products. This rate is consistent with policies at other U.S. airports that seek to set price ceilings and prevent price gouging. The Port Authority will also allow airport concessionaires to add an Employee Benefits and Retention surcharge not exceeding 3 percent of a customer’s pre-tax bill.

These pricing adjustments aim to reflect the additional costs of doing business in the airport environment, such as higher security, training, logistics, and construction expenses. According to Airports Council International North America, over 80 percent of U.S. airports have adopted a “street pricing plus” policy to help concessionaires offset these added costs. Currently, the Port Authority caps all concession prices at local “street prices” plus a maximum of 10 percent.

To ensure fair market pricing at airport concessions, the Port Authority regularly monitors compliance with its pricing standards and reviews customer complaints from feedback forms and social media. If a concessionaire is found in violation of the policy, corrective action will be taken by the Port Authority, terminal operators, or concessions management companies.

The Port Authority’s ongoing redevelopment of its airports prioritizes improvements to customer service and experience, highlighting the need for skilled workers at its facilities. The agency’s efforts to transform its airports into world-class gateways have already earned international recognition. These include the 2024 Skytrax award naming Newark Liberty’s Terminal A the world’s best new airport terminal, as well as a similar honor for LaGuardia Airport’s Terminal B in 2023. Both terminals also received Skytrax’s highest rating of five stars for facilities, service, and customer experience based on traveler surveys.

The demand for skilled airport workers is expected to increase as new and expanded terminals open as part of the Port Authority’s multi-billion-dollar redevelopment projects at John F. Kennedy (JFK) and Newark Liberty airports. JFK’s $19 billion transformation includes the opening of Terminals 1 and 6 in 2026, while terminals 4 and 8 are undergoing expansions with new retail and business opportunities. At Newark Liberty, further redevelopment planning is underway, following the 2023 opening of the new Terminal A.

The Port Authority is committed to soliciting public input on these proposed changes. A 30-day comment period is now open, during which members of the public and interested parties can submit feedback via the Port Authority website. All comments will be reviewed by the commissioners before the Board takes action on the proposal at its meeting on December 12.