Airport Retailers Charge New 'Employee Benefits' Fee, With Funds Not Guaranteed for Staff

Hudson News, a retailer at New York's John F. Kennedy International Airport, has begun implementing a 3% surcharge labeled as "employee benefits and retention." The charge, first noted by a traveler on a self-checkout receipt, is intended to help retailers manage increased labor expenses.

The fee, which appeared as "3% EMP BEN" on a recent receipt, was described as a "3% surcharge" for "employee and retention programs" and explicitly stated it was "not a gratuity." A counter sign offered a similar explanation, clarifying the purpose of the charge.

This surcharge was proposed by New York Governor Kathy Hochul and New Jersey Governor Phil Murphy in collaboration with the Port Authority of New York and New Jersey, and subsequently approved by the Port Authority board. Under the Port Authority's guidelines for airport concessionaires, businesses can charge up to 15 percent above comparable "street prices" found off-airport.

Furthermore, an employee benefits and retention surcharge of up to 3 percent of the pre-tax bill is permitted. The Port Authority states the aim is to facilitate annual wage increases for thousands of airport workers and to help concessionaires offset labor costs associated with airport minimum wage requirements and the Healthy Terminals Act.