Overview of New York's Minimum Wage Requirements
As of 2024, the minimum wage requirements in New York vary based on industry and region. For all employers in New York City, the minimum wage is set at $16.00 per hour. The same rate applies to fast food industry workers in NYC and to all workers in Long Island & Westchester County. For fast food industry workers outside NYC, the minimum wage is $15.00 per hour. The remainder of New York also has a minimum wage of $15.00 per hour. Tipped workers have varying rates based on their region.
Looking ahead, there are two legislative proposals concerning the minimum wage in New York City. The first, part of the FY24 Executive Budget proposed by Governor Hochul, suggests that the current minimum wage levels be indexed to inflation, starting in 2024, subject to a 3% cap and off-ramps, depending on economic conditions. The second proposal, the Raise Up NY proposal, would first increase the minimum wage between 2024 and 2026, to adjust for the purchasing power decline of recent years, and then index it to inflation plus nonfarm business labor productivity growth starting in 2027.
Understanding Local Minimum Wage Variations
The minimum wage requirements in New York as of 2024 vary based on industry and region. For all employers in New York City, the minimum wage is set at $16.00 per hour. The same rate applies to fast food industry workers in NYC and to all workers in Long Island & Westchester County. For fast food industry workers outside NYC, the minimum wage is $15.00 per hour. The remainder of New York also has a minimum wage of $15.00 per hour. Tipped workers have varying rates based on their region.
In New York City, Long Island, and Westchester, the minimum wage for food business employees is $16.00 per hour. For the rest of New York, the minimum wage is $15.00 per hour. Tipped service employees should receive a cash wage of $13.35 in New York City, Long Island, and Westchester, and $12.50 in the rest of the state, with a tip credit of $2.65 and $2.50 respectively. Tipped food service workers should receive a cash wage of $10.65 with a $5.35 tip credit in New York City, Long Island, and Westchester, and a cash wage of $10.00 with a $5.00 tip credit in the rest of the state.
Minimum Wage Eligibility and Exemptions
In New York, nearly every employer is required to pay the minimum wage, with the rate based on the location where an employee performs work. This means that workers must be paid the minimum wage rate for their work location, regardless of where the main office of their employer is located. There is no lower wage rate established for trainees or youth. Wages can be paid in a variety of ways, including incentive pay or commissions, but the employer has an obligation to ensure an employee earns the applicable minimum wage rate for every hour worked.
However, there are specific exceptions to this rule. Those who are not covered by the minimum wage requirements include executives and administrators earning more than 75 times the minimum wage rate, professionals, outside salespersons, taxicab drivers, certain government employees, part-time babysitters, ministers and members of religious orders, volunteers, learners, apprentices and students working in non-profit institutions, and students obtaining vocational experience. The Labor Law does not consider independent contractors – people who are in business for themselves – as "employees," meaning that minimum wage requirements do not cover them.
Minimum Wage Considerations and Compliance Tips
In addition to these wage requirements, employers must also comply with the Wage Theft Prevention Act. This act mandates that all private employers in New York provide their employees with a pay notice detailing pay rate, payment method, pay day, employer's DBA name, and contact information. Any allowances towards the minimum wage (tips, meals, lodging, etc) should also be included in this notice. Employers can contact the Department of Labor at 1-888-4-NYSDOL (1-888-469-7365) or visit their website for more information. Businesses should also keep copies of all their pay notices for record-keeping purposes.
Furthermore, food business employers, including those in the fast food industry, must adhere to specific wage orders. These regulations, known as “Wage Orders”, set industry-specific requirements and may differ from the general Minimum Wage rate. The Wage Order for the Hospitality industry, which includes fast food workers, can be found here. A summary of Wage Order Rates and Credits for the Hospitality industry is available here. For further details, employers can refer to the Fast Food Worker FAQs here.
FAQs
- What are the current minimum wage requirements and trends in New York? As of 2024, the minimum wage requirements in New York State vary based on industry and region. For all employers in New York City, the minimum wage is set at $16.00 per hour. The same rate applies to fast food industry workers in NYC and to all workers in Long Island & Westchester County. For fast food industry workers outside NYC, the minimum wage is $15.00 per hour. The rest of New York also has a minimum wage of $15.00 per hour. Tipped workers have varying rates based on their region.
- Who is eligible for minimum wage in New York, and are there any exemptions? Nearly every employer in New York is required to pay the minimum wage, with the rate based on the location where an employee performs work. However, there are specific exceptions to this rule. Those who are not covered by the minimum wage requirements include executives and administrators earning more than 75 times the minimum wage rate, professionals, outside salespersons, taxicab drivers, certain government employees, part-time babysitters, ministers and members of religious orders, volunteers, learners, apprentices and students working in non-profit institutions, and students obtaining vocational experience.
- What are the key minimum wage legal and compliance considerations for food business employers in New York? In addition to wage requirements, employers must also comply with the Wage Theft Prevention Act. This act mandates that all private employers in New York State provide their employees with a pay notice detailing pay rate, payment method, pay day, employer's DBA name, and contact information. Any allowances towards the minimum wage (tips, meals, lodging, etc) should also be included in this notice. Furthermore, food business employers, including those in the fast food industry, must adhere to specific wage orders. These regulations, known as “Wage Orders”, set industry-specific requirements and may differ from the general minimum wage rate.
Information Source Links
- New York State's Minimum Wage
- Wage Order Summary
- Department of Labor’s website
- Minimum Wage Lookup Tool
- Wage Orders page
- Minimum Wage Frequently Asked Questions
- Fast Food Worker FAQs
- Minimum Wage Information for Employers
- Wage Order for the Hospitality Industry
- Summary of Wage Order Rates and Credits for the Hospitality Industry
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