NEW YORK (CBSNewYork/AP) – Mayor Bill de Blasio has signed an executive order expanding New York City’s living-wage law, increasing the hourly rate to $13.13 from $11.90.

As WCBS 880’s Alex Silverman reports, the order will immediately cover employees working on commercial projects that receive more than $1 million in city subsidies.

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It’s expected an estimated 18,000 workers would be covered under the law over the next five years. The current law, passed in 2012, covers about 1,200 workers.

The lowest-wage workers will see a pay increase from $16,640 to $27,310 per year, according to a statement from Mayor de Blasio’s office.

“The rules change today,” de Blasio said Tuesday. “To ask national retail chains to pay a decent wage to their workers while they’re receiving a subsidy from us is imminently fair.”

The mayor told The New York Times, “We cannot continue to allow rampant and growing income inequality.”

The order also is expected to have a significant effect on fast-food and retail workers who earn a minimum wage of $8 per hour.

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Chantel Walker earns minimum wage and has been organizing for years for a wage increase, 1010 WINS’ Al Jones reported.

“$13.13 is great, but I’ll still fight for $15 in the union,” she said.

The mayor says the next step is to get Albany to rage the state’s minimum wage.

“So Albany, we’re coming for you,” NYC public advocate Letitia James said.

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