This week, Mayor Eric Adams of New York City unveiled a plan to invest $741 million in the city's human services sector, as part of a new cost-of-living adjustment (COLA).
The funding will benefit around 80,000 workers employed by non-profit organizations holding city contracts, with the aim of addressing pay equity issues for a workforce that consists predominantly of women and women of color, according to the mayor.
Under the new COLA initiative, human services workers will receive incremental wage increases of 3% annually over the next three years, beginning with the first pay raise effective July 1, 2024.
Acknowledging the essential role played by human services employees in tackling critical issues such as housing, food access, health services, and asylum seeker support, Adams emphasized the importance of fair compensation for their invaluable contributions.
“When things get tough, we must invest in our most valued asset: the people who are on the frontlines solving the most pressing issues facing our city,” he said.
This initiative is the latest in a number of investments and policies the city has enacted in support of the human services workforce.
The Adams administration worked with the Mayor’s Office of Contract Services (MOCS) on the the “Clear the Backlog” initiative, which unlocked over $6 billion in contractual money for local nonprofits, according to a release.
Additionally, Mayor Adams launched a new reform for discretionary contracts that eliminates barriers and makes it easier for nonprofits working with the city to get paid on time.
Michelle Jackson, executive director of Human Services Council, said that the COLA adjustment has been a long time coming for employees in the human services field.
“Human service workers and leaders have worked for years for this moment,” said Jackson. “This agreement — to provide a three percent cost-of-living adjustment in each of the next three years, along with a workforce enhancement — is a testament to their sacrifices in our city’s moments of need.”
