Tompkins County Weighs Higher Local Minimum Wage After Cornell Study
Tompkins County lawmakers are continuing to explore whether the county should establish its own minimum wage above New York State’s minimum, following the presentation of a months-long study examining what such a change could mean for workers, businesses and the broader local economy.
Researchers from Cornell University’s ILR Ithaca Co-Lab presented the findings to the Tompkins County Legislature after a study that included data analysis, public meetings, focus groups, stakeholder discussions and written community feedback. The county authorized up to $50,000 for the project, which was designed to examine the potential economic and social effects of adopting a countywide minimum wage.
The Case for Higher Wages
One of the central issues examined by researchers is Tompkins County’s relatively high cost of living.
According to information published by the county, the locally calculated 2026 living wage is $25.08 per hour for a single adult without children. Research cited by the county indicates that approximately half of wage earners in Tompkins County earn less than that amount.
During the study, participants identified several potential benefits of raising the wage floor, including greater financial stability for lower-wage workers, helping employees better meet local living expenses and potentially putting additional money into the local economy as workers spend their increased earnings.
Concerns for Employers and Workers
The study also highlighted potential drawbacks.
Among the concerns raised were increased labor costs for employers, possible business closures or reductions in economic activity, job losses and wage compression, which occurs when increasing wages for lower-paid employees narrows the pay difference between them and more experienced or higher-skilled workers.
Researchers noted that academic studies have produced varying findings about how minimum-wage increases affect employment, with results differing by industry and groups of workers.
Another issue is the potential for so-called benefit cliffs.
Some lower-income households qualify for programs such as food, healthcare, childcare or housing assistance based on income. An increase in wages can sometimes push a household above an eligibility threshold, causing it to lose benefits worth more than the additional wages it receives.
The study estimated that approximately 2% to 4% of affected households could experience a net loss of income because of benefit cliffs.
Researchers also examined how a county-specific wage could affect businesses near Tompkins County's borders, particularly those competing with employers operating just outside the county under a different wage requirement.
A Major Legal Question Remains
Before lawmakers could establish a local minimum wage, they would also have to determine whether Tompkins County actually has the legal authority to do so.
County Attorney Maury Josephson pointed to pending federal litigation involving New York City's minimum-payment requirements for delivery workers as one issue that could provide additional guidance on whether state law prevents local governments from establishing their own wage requirements.
If the county eventually moves forward, lawmakers would face several additional decisions, including how high to set the wage, whether to phase an increase in over time, how future increases would be calculated and whether particular workers or employers would be exempt.
For now, however, the discussion remains just that: a discussion.
No action was taken to establish a local minimum wage following the presentation. Legislature Chair Shawna Black said a vote was not expected at the meeting and was unlikely during the remainder of 2026, with additional discussion expected at the committee level.
The county's consideration of the issue dates back to 2024, when legislators voted to explore the possibility of a local minimum wage. Funding for the Cornell study was subsequently approved in 2025.
Whatever direction lawmakers ultimately take, the issue could have consequences across Tompkins County. A higher wage floor could increase earnings for some workers while also changing labor costs for businesses and interacting with public-benefit programs in complicated ways.
For the moment, county officials have considerably more to examine before any proposed local wage becomes law.
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