ALBANY — The gap in pay between fast-food workers and other minimum wage earners in upstate New York is making an impact.

Legislation enacted in the 2016-17 budget brings the upstate minimum wage from $10.40 to $11.10 by year end, but some businesses in the Capital Region say they must pay employees well above this figure to compete for the same labor pool as fast-food restaurants.

The minimum wage schedule for upstate New York is outpaced by 2015 legislation mandating that fast-food workers across the state be paid $15 an hour by July 1, 2021.

Non-fast-food workers outside New York City must be paid $12.50 an hour by Dec. 31, 2020, and the amount will gradually increase with the rate of inflation until it reaches $15 a hour.

The fast-food pay raise appears to be having a spillover effect in overlapping industries like retail, since stores may be located in a mall with a food court, or gas station convenience stores, which often have fast-food counters embedded inside.

Jim Calvin, president of the New York Association of Convenience Stores, argues that the fast-food rate has become the de facto minimum wage upstate.

"On a statewide basis, the higher fast-food minimum wage pretty much sets the floor for any small retailer who wants to compete for qualified employees," Calvin said.

In the statute, the Legislature enabled the state Department of Labor to potentially freeze the fast-food pay until the non-fast-food minimum wage "caught up" — something NYACS has pushed for — but the opportunity has passed.

Christian P. King, owner of KNC Holdings, which runs a cluster of upstate gas stations and car washes in the Capital Region, told the Times Union he will be forced to start new hires at $12.75, the fast-food hourly rate for 2019. Paying less, he said, would attract the wrong kind of employee.

"Getting the wrong people doesn't help our bottom line," he said, adding, "This is going to eliminate the kid getting his first job. You just can't be paying a 17-year-old kid $12 to $15 an hour."

It's not clear how the fast-food wage requirements will affect minimum wage earners other non-food-related industries, like farm workers and direct care aides.

The demand for labor may also be higher in the Capital Region, which has a strong economy and historically low unemployment rates. Low-wage jobs are harder to come by in other parts of the state.

Ken Pokalsky of the Business Council of New York State, said statewide, fast-food workers make up a slim segment of minimum-wage employees and there are many industries that do not compete for the same employee pool as fast food chains.

"I think when the minimum wage goes up statutorily on Jan. 1, it will have a much greater effect across the board on wage rates than the sector-specific one does," he said.

The majority convenience store and small business owners already pay employees above minimum wage for reasons that are unrelated to skill level.

Stewart's Shops, a Saratoga County-based convenience store franchise, had already been paying employees at $12 an hour in order to recruit higher quality of employees and reduce staff turnover.

Calvin said the fast food rate has a ripple effect on employees making above minimum wage, because "when the floor rises, employees expect a raise."

The gap between fast food workers and other low-wage employees will continue to grow in the next two years. By 2021, weekly salaries for fast food workers upstate will exceed non-fast food workers' pay by as much as $100 a week.

Spokespersons for Gov. Andrew Cuomo's office and the state Labor Department did not respond to requests for comment.