New York’s Minimum Wage Just Increased Here’s Where And By How Much
New Yorks minimum wage is set to increase on Dec. 31, with three downstate counties arriving at the $15 minimum wage threshold set for the state five years ago.
Minimum wage workers in Westchester County and in Nassau and Suffolk Counties on Long Island will see $15 an hour in the new year, on par with workers employed by large firms in New York City, who have been making $15 an hour since the end of 2018.
Fast food workers across New York also make $15 an hour, regardless of location.
Workers in the rest of the state will see an increase to $13.20 an hour a 70-cent increase from the current rate of $12.50 on Dec. 31.
The increases are part of New Yorks minimum wage package, passed in 2016 by the state Legislature and then-Gov. Andrew Cuomo with a five-year rising scale of wages, staggered across the state based on location.
The increase comes in the midst of the states ongoing economic recovery from the COVID-19 pandemic, which stifled economic growth and snarled the job market.
More on NY’s minimum wage: Division of the Budget report says NY’s minimum wage should increase at year’s end
New York State To Kick Off 2022 With Increases To Minimum Wages And The Overtime Exemption Salary Threshold
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Effective December 31, 2021, employers in certain regions and industries throughout New York State once again saw changes to New York’s wage and hour requirements. Below we summarize the new requirements employers must meet regarding increases in minimum wage rates, tip credits for tipped employees in the hospitality industry, and salary basis thresholds for overtime exemptions.
Standard Minimum Wage Rates
The New York State Minimum Wage Act provides for annual increases in the minimum wage rates throughout the State. These increases occur on December 31 of each year and will continue until a $15.00 per hour rate is reached. This year, employers in Nassau, Suffolk, and Westchester counties joined New York City and large fast-food employers throughout the State with a $15.00 per hour minimum wage ratean increase from the $14.00 per hour rate that went into effect on December 31, 2020. The remainder of employers in New York also saw an increase, although not yet hitting the $15.00 mark, with a move from $12.50 per hour to $13.20 per hour.
Tipped Employees in the Hospitality Industry
Changes to the minimum wage requirements for non-tipped hospitality workers in these regions follow the changes to the standard minimum wage rates detailed above.
Minimum Salary Thresholds for Overtime Exemptions
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In New York City, employees in companies with 11 or more individuals saw their minimum hourly wage go from $13 to $15 as of Dec. 31, 2018. Employees in companies with 10 or fewer individuals went from $12 to $13.50 as of Dec. 31, 2018, with the wage going up to $15 on Dec. 31, 2019.
Employees in Long Island and Westchester saw their wages go from $11 to $12 as of Dec. 31, 2018, with rates going up $1 each year until it reaches $15.
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What Support Is The State Providing
On 20 May, New York Governor Hochul announced a new program that would provide low-income families with support to cover the costs of childcare.
Im very proud to come to this site and announce that we are now going to be distributing $2 billion in childcare subsidies for families and providers. This is the largest investment in childcare in the history of the state of New York, said the governor. Families will not see these benefits directly, rather, the funds will be distributed to childcare centers which serve low income families.
On average, families are paying 2.5 percent more for childcare than this time last year.
What Is The Minimum Wage In New York In 2022
New York minimum wage in 2021: US$12.5
New York minimum wage in 2020: US$11.80
New York minimum wage in 2000: US$4.25
New York minimum wage in 1980: US$3.10
The New Yorks minimum wage is linked to consumer price index, which means, the minimum wage rate would increase along with the rise of inflation and it is re-evaluated yearly based on these values.
Seeing how New York City has the highest living standards and costs, it is no wonder that it is the first place where the proposed minimum wage rate increases are coming into power.
The FLSA also contains a minimum wage and tip-credit regulations which certain New York employers must comply with as well, but these requirements are generally encompassed by the NYLL.
In addition to any New York-specific minimum wage exemptions described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers.
We will explore how minimum wage differs by location and by industry to see how much a New York state employer is supposed to pay their workers and the minimum salary you should have.
Employers in New York are subject to different minimum wages, allowable tip credits, and minimum exempt employee salaries based on where employees work and what kind of work they do.
The New York State Department of Labor recently published final rule regarding the increased salary thresholds to be considered exempt from overtime as well as changes to the minimum wage schedule.
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The Minimum Wage For Tipped Workers In New York State
If you work in a job role that relies on tips , then your minimum wage will differ.
Employers can include tips as part of your paycheck they will likely pay you a smaller cash wage and provide a tip credit.
The New York State Department of Labor has broken down the minimum employer contributions as follows:
Hospitality Sector:
I Heard The Minimum Wage Is Supposed To Be $15 Is The Wage Going To Continue To Increase
Yes. Currently, the minimum wage in New York City is $15. The rest of the Empire State will continue to increase gradually each year until it reaches $15. Below is the rate increase schedule:
| $12.50 | $13.20 |
If the New York minimum wage for 2022 worries you, weve got some good news: Starting in 2019, the states Department of Budget Director runs an annual analysis of the economy in each regionlooking at the impact of the minimum wage increases statewideto determine whether a temporary suspension of the scheduled increases is necessary.
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Federal Minimum Wage Vs New York Minimum Wage
The minimum wage in New York is considerably higher than the Federal minimum wage of $7.25. This rate has been in effect since 2009.
It is important to note that Federal minimum wage laws negate state laws that dictate a lower rate than the Federal minimum. In other words, employees are entitled to the rate that is higher between state and Federal standards. The rate is determined by the Fair Labor Standards Act and dictates that employees within the United States must be paid at least this hourly wage in both private and public sectors.
As of January 1, 2018, Executive Order 13658 established that workers performing work related to covered federal contracts must earn a minimum wage rate of at least 410,35 per hour.
The Minimum Wage For Fast
Due to the popularity of fast-food restaurants throughout the state, there is a special minimum wage which is specifically for chains operating 30 or more branches.
In New York City, employees should already be earning a minimum of $15 an hour. Outside of NYC, wages currently start at $13.75, although this is due to rise to $14.50 from 31 December 2020.
A further wage increase will take place on 31 July 2021 where it will reach the required $15 hourly rate.
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Whats The Plan For Paid Family Leave
Under former Governor Cuomos plan, New York employers will be required to provide 12 weeks of paid family leave benefits to eligible employees .
Just like the minimum wage, the paid leave benefits will also be phased in. At the beginning of 2018, employees were eligible for eight weeks of leave. Then by the end of 2021, employees will be eligible for the full 12 weeks.
Stressed about how much this new paid family leave law will cost your business? Dont be. The new family leave program will be funded entirely via a nominal employee payroll deduction, resulting in zero cost to businesses.
History Of The Minimum Wage In New York State
History of the General Hourly Minimum Wage in New York State
| Effective Date | |
|---|---|
| State minimum wage rates varied from industry to industry | |
| Newly established general minimum wage set at $1.00 | |
| Increased from $1.00 to $1.15 | |
| Increased from $1.15 to $1.25 | |
| Increased from $1.25 to $1.50 | |
| Increased from $1.50 to $1.60 | |
| Increased from $1.60 to $1.85 | |
| May 1, 1974 | Increased from $1.85 to $2.00 |
| Increased from $2.00 to $2.10 | |
| Increased from $2.10 to $2.30 | |
| Increased from $2.30 to $2.65 | |
| Increased from $2.65 to $2.90 | |
| Increased from $2.90 to $3.10 | |
| Increased from $3.10 to $3.35 | |
| Increased from $3.35 to $3.80 | |
| Increased from $3.80 to $4.25 | |
| Increased from $4.25 to $5.15 | |
| Increased from $5.15 to $6.00 | |
| Increased from $6.00 to $6.75 | |
| Increased from $6.75 to $7.15 | |
| Increased from $7.15 to $7.25 | |
| Increased from $7.25 to $8.00 | |
| Increased from $8.00 to $8.75 | |
| Increased from $8.75 to $9.00 |
Beginning December 31, 2016, annual increases in the general minimum wage were determined by employment location, industry, and number of employees .
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New York Minimum Wage For 2021 2022
Contents :: New York Minimum Wage
New York’s state minimum wage rate is $13.20 per hour.This is greater than the Federal Minimum Wage of $7.25. You are entitled to be paid the higher state minimum wage.The minimum wage applies to most employees in New York, with limited exceptions including tipped employees, some student workers, and other exempt occupations.
The New York minimum wage was last changed in 2008, when it was raised $6.05 from $7.15 to $13.20.
The current minimum wage rate as of December 31, 2021 in New York is $13.20 per hour. The minimum wage in New York City is $15.00 per hour for large employers and for small employers . The minimum wage for Long Island and Westchester Counties is $15.00.Tipped wages in New York may vary, by firm size, industry and amount of earned tips. The tipped wage In New York state is $11.00 per hour. New York cities tipped rate is $12.50 for businesses with and for. Long Island and Westchester’s tipped rate is $12.50 per hour for tipped service workers and $10.00 per hour for food services workers.Current minimum wage rates for Fast Food workers in the state is 14.50 per hour and in New York City is $15.00 per hour. There are regular increases in the state through 2021 and in New York City through 2018.The scheduled increases for Fast Food Workers will continue as follows:
- New York State: $ $12.75 , $13.75 , $14.50 , $15.00
- New York City: $15.00
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When Will The Minimum Wage In Nys Increase
Although the NYS minimum wage is already generous in comparison to the federal wage, there are plans in place to continually increase wages until they are capped at $15 per hour.
In December 2020, minimum wages in NYS will increase from $13 to $14 for those in Long Island and Westchester County. It will also rise from $11.80 per hour to $12.50 per hour for those in the remainder of the state. This is an increase of 70 cents per hour.
The minimum wage will continue to have incremental rises until it reaches $15 across the entire state.
It is thought that cities such as Buffalo or Rochester will reach the $15 minimum wage in 2024 .
The annual increase has been backed by Gov. Andrew Cuomo who says:
In New York, we believe in a fair day’s pay for a fair day’s work, and we won’t stop fighting until every hardworking New Yorker is paid the fair wages they deserve”.
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Inflation In New York 2022
Food and energy commodities have seen prices increase rapidly over the last year. The inflationary pressure comes as supply chain disruptions caused by the pandemic and, more recently, the Russian Invasion of Ukraine have caused many firms to increase their prices. New York and New Jersey, these trends have led to an average increase of 6.3 percent throughout the market.
For household staples like meats, poultry, fish, and eggs, New Yorkers are paying on average 13.2 percent more than April 2021. The same is true for fruits and vegetables and dairy products which have seen increases of 8.9 percent and 7.2 percent, respectively.
The New York State Controller has reported that while New York City has been less impacted by inflation than other parts of the country. The office has, however, realized that price increases may be outstripping earnings growth and squeezing household budgets.
Rising Wages Amid A Pandemic
Last year, some lawmakers and business groups to raise the minimum wage as scheduled, saying it would maim struggling businesses trying to come out of the worst of the pandemic.
At the time, the state argued that low-wage workers were some of the hardest hit in 2020, particularly in the hospitality and retail sectors, and therefore they should receive a bump in pay.
This year, in its annual review of the state economy to determine whether a wage increase is warranted, New Yorks Division of the Budget again found that the low-wage sector was the most severely impacted by the pandemic.
The state said 1 million jobs, or 57% of the private sector losses, were impacted in the three industries where minimum wage workers are most concentrated: retail, health care and hospitality.
It makes sense to raise the wage floor now and continue supporting New Yorks families while providing a predictable path forward for businesses, Labor Commissioner Roberta Reardon said in a statement in September, following the publication of the Division of the Budgets review. With todays action we are continuing the work of building back with equity and justice.
Reardon noted that many employers were already paying above the minimum wage due to the high demand for labor in New York and across the nation.
Nationally, President Joe Biden signed an executive order in April, requiring a $15 an hour minimum wage for federal contractors starting on Jan. 30, 2022.
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What Is The Minimum Wage In New York State
The state of New York has long offered higher minimum wage entitlements to employees in comparison to the federal minimum wage.
The current NYS minimum wage stands at $11.80 an hour. This is an increase of $4.55 above the current federal minimum wage.
Throughout New York State, many individual cities have chosen to implement their own minimum wage requirements.
Later in this article, we will break down how the NY minimum wage can vary.
It should be noted that the minimum wage will always favor the employee. If there is a difference between a federal, state or city wage, the employee will always be entitled to the highest possible amount.
New York State Minimum Wage For Tipped Employees
New York state law allows employers in all industries to satisfy the minimum wage by combining a cash wage paid by the employer with a credit or allowance for tips that the employee receives from customers.
The 2022 minimum wage does not change the amount of tip credit. Employers must continue to ensure that their employees cash wages and tips enable them to receive wages at or above the applicable minimum wage rate.
Cash wages and tip credits in New York state depend on location and industry. Employers should review the information published by the NYDOL for more information.
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Is The Nys Minimum Wage Dependent On The Number Of Employees
If you live in New York City, you may find that your minimum wage entitlement changes depending on the size of your employer.
Those working for large firms will be entitled to $15 an hour.
If your company employs ten people or less, then it will legally be classed as a small company. As such, the legal minimum wage is $13.50 per hour.
Minimum Hourly Rates For Fast Food Employees
New York City:$12.00 per hour on and after December 31, 2016 $13.50 per hour on and after December 31, 2017 $15.00 per hour on and after December 31, 2018.
Outside of New York City:$10.75 per hour on and after December 31, 2016 $11.75 per hour on and after December 31, 2017 $12.75 per hour on and after December 31, 2018 $13.75 per hour on and after December 31, 2019 $14.50 per hour on and after December 31, 2020 $15.00 per hour on and after July 1, 2021.
If you have any questions about New York State’s minimum wage, please see the State Department of Labor’s minimum wage resource page.
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Proposed New York State Minimum Wage Increases Would Lift Wages For More Than 2 Million Workers Through 202: Minimum Wages Would Range By Region From $1635 To $2125 Per Hour By 2026
Proposed legislation in the New York state legislature would ensure that low-wage workers in New York are protected from rising prices and benefit from improvements in the broader economy. Senate bill S3062C and assembly bill A7503B would schedule annual increases to the minimum wage that would be linked to the combination of the consumer price index and a measure of labor productivity. We estimate that the resulting increases in the state minimum wage would lift wages for more than 2 million New Yorkers through 2026.
New Yorks minimum wage law sets separate minimum wages for three different regions of the state: New York City, the suburban counties of Nassau, Suffolk, and Westchester, and the remainder of upstate New York. Under current projections1 for inflation and labor productivity, as shown in Table 1, indexing the minimum wage to changes in prices and productivity would increase New York Citys minimum wage from $15.00 where it is now to $21.25 by 2026. Nassau, Suffolk, and Westchester counties minimum wage would rise from $15.00 to $18.65 by 2026, and the rest of the state would increase from $13.20 to $16.35.
Tying the minimum wage to inflation and productivity would increase wages throughout New York: Current and proposed minimum wage values by region of New York, 20232026
| Nassau, Westchester, and Suffolk counties | Upstate New York |
|---|---|
| $18.65 | $16.35 |
EPI analysis of S3062C and A7503B.
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| Year |
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