New York Minimum Wage Increases For 2022
Under the New York State Minimum Wage Act, minimum wage rates in New York increase each year on December 31 until reaching $15.00 per hour. In New York City and for large fast-food companies throughout the state, the minimum wage has already reached its $15.00 maximum.;
On Sept. 22, 2021, the New York State Division of the Budget issued its report on the minimum wage rates scheduled to take effect on Dec. 31, 2021. Nassau, Suffolk and Westchester counties will now join New York City and large fast-food companies with a minimum wage of $15.00 per hour, which is an increase from the current rate of $14.00 per hour. For companies upstate , the minimum wage will increase to $13.20, which is an increase from $12.50 per hour.;
The Division of Budgets report also examined the labor market recovery in the wake of the COVID-19 pandemic. The report noted that prior to COVID-19, the low-wage sector was growing in New York City, Long Island and Westchester. While for Upstate, the low-wage sector declined, including a decline in .4% in 2019.;
When broken down even further, the report shows that the leisure and hospitality industry took the greatest hit from the COVID-19 pandemic. For low-wage employment in the leisure and hospitality industry in 2020, the report noted a decline of 33.9% statewide, 41% for New York City, 26.2% for Long Island and Westchester and;27.8% for Upstate.;
Mallory A. Campbell
Summary Of New York Minimum Wage Laws
As shown above, New York has a very and complex and difficult minimum wage law to navigate. Employers who violate the minimum wage law face strict penalties and severe restrictions. Employers must make sure that they pay the minimum wages applicable to each region to employees who work in multiple locations.
New York State Paid Family Leave
Workers will be eligible for 12 weeks of paid family leave in 2018. The time may be used for caring for family members during a serious health condition or to support the workers family when a member is called to active military service. Workers must be employed for six months before being eligible to participate.
As with the minimum wage increase, New York is staging benefit increases, beginning with 50 percent of an employees average weekly wage, capped to 50 percent of the statewide average weekly wage. The average weekly wage will increase to 67 percent by 2021, with a 67 percent cap.
The good news for employers is that workers will pay for the program from a nominal payroll deduction from their checks to cover the entire payroll cost of the program. Except for the cost of scheduling replacement staff, of course.
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Nassau Suffolk & Westchester Counties Tipped Employees
Employees in Nassau, Suffolk, and Westchester Counties currently had a low tip credit of $1.05 and a high tip credit of $2.45 in 2017.
On December 31, 2017, the low tip amount became $1.65. The high tip amount became $2.70.
New Changes in 2018:
On December 31, 2018, the low tip amount will rise to $1.80. The high tip amount will rise to $2.95.
Minimum Wage Increases In New York: What Employers Should Know
On April 4, 2016, New York Governor Andrew Cuomo executed sweeping legislation as part of the 2016-17 state budget, implementing a complicated and staggered set of minimum wage increases, and creating a system of paid family leave benefits.1;This Insight describes the schedule and details of the minimum wage increases to be implemented commencing December 31, 2016, and continuing each year until 2021.
Schedule of Minimum Wage Increases
The legislation2;will gradually raise the minimum wage to $15.00 an hour under different schedules in three state regions: 1) New York City; 2) downstate, which includes Nassau, Suffolk and Westchester counties; and 3) the remainder of New York State .; The legislation also sets a different schedule of increases for New York City businesses with 10 or fewer employees.
The current minimum wage in New York is $9.00 per hour, while fast food workers in chain restaurants are currently entitled to a minimum wage of $10.50 in New York City and $9.75 outside of New York City.;
The schedule of minimum wage increases is as follows:
Workers Employed in New York City by Businesses with 11 or More Employees
Workers Employed in New York City by Businesses with 10 or Fewer Employees
Workers Employed in Nassau, Suffolk and Westchester Counties
Workers in the Remainder of New York State
To be determined
Safety Valve in the Event of Economic Decline
Schedule for Fast Food Workers
New York State Outside New York City
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What About The Minimum Wage For Workers Who Make Tips
Again, it depends on your companys industry and location. These are the details:
Fast food workers:
- NYC minimum wage: $15 per hour. This minimum wage will stay the same for 2021
- Rest of New York state: $13.75 per hour, currently. Starting December 31, 2020, this will rise to $14.50 per hour
Hospitality service workers:
The stats below are for workers that spend less than 20 percent of their time on untipped work.
NYC businesses with 11 or more employees: $12.50 per hour and $2.50 in tip credit
- NYC businesses with 10 or fewer employees: $12.50 per hour and $2.50 in tip credit
Nassau, Suffolk, and Westchester county businesses for all workforce sizes: $10.85 per hour and $2.15 in tip credit. Starting on December 31, 2020, this will rise to $11.65 per hour with $2.35 per hour in tip credit
- Rest of New York: $9.85 per hour and $1.95 in tip credit. Beginning on December 31, 2020, employers will have to pay $10.40 per hour with $2.10 in top credit
Food service workers:
The stats below are for workers that spend less than 20 percent of their time on untipped work.
New York Tipped Employees Minimum Wage
Tipped employees in New York have possibly the most complex minimum wage. Under the law, if an employee receives less than the low tip amount, then the employer cannot claim any tip credit.
If the employee receives between the low and the high tip amount, then the tip credit cannot be higher than the low amount.
If the employee receives more than the high tip amount, then the employer can use a tip credit of the high tip amount.
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Minimum Wage In New York
New York States Minimum Wage in 2021 is $12.50 per hour. However, the Federal Minimum Wage in New York State is $7.25, which is lesser than the NYS minimum wage. Hence employers are entitled to pay the higher state minimum wage to their employees.
This minimum wage is applicable to most of the employees in NYS, with limited exceptions including some student workers, tipped employees, and other exempt occupations.
Managing labor compliance at large organizations in New York may lead to legal issues. Learn how organizations are leveraging Replicons solutions with build-in compliance module to solve New Yorks minimum wage needs.
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.
Employees in New York City
Minimum wage in New York City 2021 is $15.00 per hour for employers with 11 employees or more . NYC employers with 10 or fewer employees are considered as small employers and their minimum wage is $15 per hour.
Employees in Long Island and Westchester Counties
The minimum wage for employees in Long Island and Westchester Counties is $14.00 per hour. Employees working in these regions will see incremental increase of $1.00 per hour each year until the minimum wage reaches its desired maximum when it becomes $15.00 per hour effective December 31, 2021.
Employees in all other NYS Counties
What Is Minimum Wage In Upstate Ny
The hourly minimum wage in upstate New York is increasing on Dec. 31 to $12.50 from $11.80. Its part of the states plan to eventually reach a $15 hourly minimum wage statewide. The minimum wage will also be rising to $14 an hour in Long Island and Westchester.
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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.
Raising The Minimum Wage To $15
The statewide $15 minimum wage was enacted as part of the 2016-17 State Budget.;The Minimum Wage rates are scheduled to increase each year on 12/31 until they reach $15.00 per hour.
A statutorily required report by the Division of the Budget found evidence of pressure for wages to rise in the midst of a pandemic-driven labor shortage. On December 31, 2021, the minimum wage will rise to $15 per hour on Long Island and in Westchester, matching the $15 hourly minimum already set in New York City. ;The Director of the Division of Budget, together with the Commissioner of Labor, determined that the minimum wage should rise to $13.20 per hour in the rest of the state based upon economic factors and indices.;
The wage increases are calibrated by industry and by region in order to provide businesses ample time to adjust. Additional information is available for tipped, fast food and other workers not covered by the general wage.
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New York States Minimum Wage Rates By Type And Size Of Employer
The minimum wage in New York State varies by employer size as follows:
Small employers . The minimum wage has historically risen $1.50 annually before reaching a $15.00 cap on December 31, 2019. This remains the minimum wage as of January 10, 2021.
There is currently a controversial debate surrounding how increasing the minimum wage will affect New York States unemployment rate.
On October 1st, New Yorks Commissioner of Labor will announce whether the state will commit to further increasing the $15.00 minimum wage cap.
Large employers . The minimum wage follows the same pattern as for small employers. It rose $1.50 each year before capping at $15.00 on December 31, 2018.
Well find out on October 1st, 2021 whether the cap will be lifted.
Upstate Minimum Wage To Hit $1250 An Hour On December 31
ALBANY, N.Y. Upstate New Yorks minimum wage will increase to $12.50 an hour on December 31, the Department of Labor has announced. The raise is part of the minimum wage phase in taking place across the state.
The phase in was announced after a statutorily required report by the Division of the Budget found the Upstates labor market is amongst those leading New Yorks economic recovery from the downturn caused by the global pandemic.
Even as we continue to battle the pandemic, we are working to build back in an equitable and just way.
Before this crisis, we achieved record low unemployment rates while increasing the minimum wage improving the lives of thousands of New Yorkers and we will rebuild our economy while continuing to lead the nation in the fight for economic justice. This investment in our workers once again proves that in New York we believe a fair days work deserves a fair days pay.
Labor Commissioner Roberta Reardon
Other findings in the report include:
The minimum wage in New York City is set to increase to $15 an hour for companies with 10 or fewer employees. Companies with more than 10 employees have had to pay $15 an hour since the end of 2018.
Long Island & Westchesters minimum wage will increase to $14 an hour, and is scheduled to increase to $15 an hour on December 31, 2021.
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New York City Tipped Employee Of A Small Business
NYC small employers, 10 or fewer employees, currently had a low tip amount of $1.60 and a high tip amount of $2.55 in 2017.
As long as the employee earns at least the low tip amount, the employer can use it as a tip credit. If the employee earns at least the high tip amount, the employer can use the high amount as a tip credit.
On December 31, 2017, the low tip amount rose to $1.80. The high tip amount became $2.95.
On December 31, 2018, the low tip amount will become $2.05 and the high tip amount will move to $3.30.
New York State Minimum Wage For Fast Food Workers
The following minimum wage rates for fast food workers who work for a chain with 30 or more establishments was approved by a state wage panel.
Fast Food Minimum Wage Rates for New York State, Excluding New York City:
- $14.50;per;hour on December 31, 2020;
- $15.00 on July 1, 2021.
Fast Food Minimum Wage for New York City:
- $15.00 per hour
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Path To $15 For All Regions Of The State Under Tiered Plan
Agreement Would Mean Big Raises for Close to 1 in 3 Workers, Reversing Years of Falling Pay
Follows California Deal to Raise the Wage to $15 Statewide
New York, NY Three years after a few brave workers in New York City first went on strike launching the Fight for $15, New York lawmakers today approved a plan to raise the state minimum wage to $15. Under the tiered agreement, the minimum wage would reach $15 in New York City by December 2018 , and in suburban Long Island and Westchester County by December 2021. In Upstate New York, the wage would rise to $12.50 by December 2020, and then be increased each year until it reaches $15, based on a formula to be determined by the state Department of Budget.
Earlier this week, California lawmakers reached a similar agreement to raise the minimum wage to $15 statewide by 2022.
Governor Cuomo deserves tremendous credit for delivering a path to a $15 minimum wage for workers statewide and the largest wage increase in New York history, said Christine Owens, executive director of the National Employment Law Project. Together with the landmark $15 win this week in California, the New York $15 plan shows how the Fight for $15 launched by underpaid workers has changed the nations economic trajectory, beginning to reverse decades of wage inequality.
The U.S. economy has tilted so far towards low-paying jobs that today 42 percent of Americas workers earn less than $15 per hour.
Nassau Suffolk & Westchester Counties Hospitality Food Service Employees
In 2017, employees in Nassau, Suffolk, and Westchester counties enjoyed a minimum wage of $10.00. The tip credit was at $2.50 with a minimum cash wage of $7.50.
On December 31, 2017, the minimum wage rose to $11.00. The tip credit is $3.50 and the minimum cash wage remains at $7.50.
On December 31, 2018, the minimum wage will rise to $12.00. The tip credit will rise to $4.00 an hour and the minimum cash wage will become $8.00.
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Tipped Employees In The Remainder Of New York State
Tipped employees not in specified locations had a low tip amount of $1.45 and a high tip amount of $2.35 in 2017.
On December 31, 2017, the low tip amount became $1.55 and the high tip amount became $2.55.
Starting December 31, 2018, the low tip amount rises to $1.65. The high tip amount goes to $2.70.
Overview Of The New York State Hospitality Service Employees Minimum Wage
As long as the employee receives at least the amount of the tip credit in actual tips, the employer can apply the tip credit to minimum wage and pay a cash minimum wage. Cash minimum wage plus the tip credit equals the minimum wage for tipped employees.
Minimum wage includes not only a tip credit and a minimum cash wage but also includes criteria under which an employer can apply for the tip credit and pay the minimum cash wage, instead of paying the full minimum wage.
In order for New York employers to pay an employee a minimum cash wage, the employee must qualify as a tipped employee.
First, service employees in the hospitality industry must work more than 80% of their shift doing tipped work. If an employee spends more than 2 hours or more than 20% of their shift doing non-tipped work, then the employer must pay that employee regular minimum wage.
In addition, tipped employees must receive at least a tip threshold for the employer to use the tip credit and pay the minimum cash wage instead of the regular minimum wage.
The tip threshold is broken into thresholds for employers over and under 10 employees and it is broken into resort and non-resort employees.
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