The brief examines how mandated wage increases for New York City home care workers can trigger a “benefits cliff,” where small pay raises lead to a net loss of income due to reduced eligibility for public benefits.
Most workers were financially vulnerable, relied on multiple benefits, and were often unaware of the benefits cliff until it affected them, sometimes forcing them to reduce work hours to retain assistance. The study highlights the need for clearer information, policy changes, and better support to help workers manage the interplay between wages and public benefits.
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