All workers in New York state are entitled to receive an hourly Minimum Wage rate according to New York Labor Laws and the Fair Labor Standards Act (FLSA). This Minimum Wage requirement includes workers across the hospitality industry, such as fast food workers, nail salon workers, tipped workers, and more.
Updated: November 4, 2024
What Is The Minimum Wage In New York State?
In areas outside New York City, Long Island County, and Westchester County, the current 2024 New York State Minimum Wage is $15.00 per hour. The minimum wage went into effect on 01/01/2024.
The new minimum wage is an increase of roughly 5.6% above the previous New York State Minimum Wage of $14.20, which was effective from 12/31/2022 - 12/31/2023.
In New York City, Long Island County, and Westchester County, the current 2024 Minimum Wage is $16.00 per hour. The minimum wage also went into effect on 01/01/2024.
The new minimum wage is an increase of roughly 6.7% above the previous local minimum wage of $15.00.
New York Minimum Wage Schedule
| Location | Minimum Wage as of 12/31/2022 | Minimum Wage as of 01/01/2024 | Tipped Service Employees | Tipped Food Service Workers |
|
New York City |
$15.00 | $16.00 |
As of 01/01/2024 $13.35 Cash Wage $2.65 Tip Credit |
As of 01/01/2024 $10.65 Cash Wage $5.35 Tip Credit |
| Long Island & Westchester | $15.00 | $16.00 |
As of 01/01/2024 $13.35 Cash Wage $2.65 Tip Credit |
As of 01/01/2024 $10.65 Cash Wage $5.35 Tip Credit |
| Remainder of New York State Workers | $14.20 | $15.00 |
As of 01/01/2024 $12.50 Cash Wage |
As of 01/01/2024 $10.00 Cash Wage |
New York State Minimum Wage for 2025 (and 2026)
While the New York Department of Labor has yet to update its minimum wage tables and rates for 2025, the state has announced that minimum wage will increase on January 1st, each of the next two years, by 50 cents.
That said, the state minimum wage is scheduled to increase by $0.50 per year on January 1, 2025.
New York State Minimum Wage for Fast Food Workers
As a reminder, fast food workers are defined differently than other food service workers. True fast-food employees are on a different schedule for minimum wage increases.
As of January 1st, 2024, in areas outside New York City, Long Island County, and Westchester County, the current 2024 New York State Minimum Wage for fast food workers remains unchanged at $15.00 per hour.
In areas within New York City, Long Island County, and Westchester County, the current 2024 New York State Minimum Wage for fast food workers has increased to $16.00 per hour.
To learn more about processing payroll in New York, click here.
Special Rules for Tipped Workers
New York employers should also be aware of special rules for tipped employees regarding minimum wage in New York. These rules cover tip credits, the minimum credit amount, and when credits may be used.
Preparing for the New York Minimum Wage Change
If the business you work in is located in New York State, specifically, outside of New York City, Long Island County or Westchester County, it is going to need to prepare for an increase in the minimum wage. If the company has a number of workers at the minimum wage, it will experience a rise in staffing costs, which can be disruptive to business operations if unprepared. Here are some things the business should do to prep for the change:
Review & Update Budgets - One of the first things to prepare for in advance of the minimum wage change is the staffing and operating budget. Will the business need to trim headcount? Will it need to rely more on part time workers? Will it have to stay closer to timesheets to reduce overtime?
Review HCM Technology Solutions - Put simply, an all-in-one payroll and HR solution that handles HCM needs end-to-end is more efficient for employers and employees alike. If your company is currently operating payroll, timekeeping and HR in disparate software, it makes it much more challenging to ensure compliance and manage a budget effectively.
Review & Document Policies - Employees should be able to review and comprehend company policies anytime they need to. This is especially true for changes that affect them directly and immediately, such as a change to minimum wage. Anytime a major change is coming down the pipeline, it's a good time to review documented company policies and procedures to ensure they're up-to-date, clear and comprehensive.
2024 Taxable Wage Base
New York State has also announced a new Taxable Wage Base for 2024 SUI Tax Rates in New York, along with the updates for minimum wage.
Get Help with New York Minimum Wage Compliance
Managing compliance with minimum wage might seem simple, but in a state like New York with varying rules depending on industry and locality, it can get complicated. Companies that fall out of compliance may find themselves facing serious New York labor law penalties and fines.
Employers who are struggling with minimum wage compliance in New York should consider reaching out to a New York Payroll Provider for assistance, or modern payroll software.
To see how EBC is already helping countless businesses manage minimum wage compliance in New York, contact us today.
