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New York increases minimum wage

11/07/19

Author: ADP Admin/Wednesday, November 6, 2019/Categories: Compliance Corner , State Compliance Update, New York

New York's minimum wage will increase on December 31, 2019. This change is a result of a 2016 law that increased the minimum wage incrementally.


Background:

Different minimum wage rates will be in effect in separate areas of New York until the minimum wage reaches $15.00. The minimum wage for New York City employers with 11 or more employees increased to $15.00 on December 31, 2018.


Smaller New York City Employers:

If the employee works in New York City and works for an employer with 10 or fewer employees, the minimum wage will be $15.00 per hour beginning December 31, 2019.


Non-exempt Employees Who Work in Nassau, Suffolk and Westchester Counties:

If the employee works in Nassau, Suffolk, or Westchester County, the minimum wage will be:

Effective Date

Minimum Wage

December 31, 2019

$13.00 per hour

December 31, 2020

$14.00 per hour

December 31, 2021

$15.00 per hour


Non-exempt Employees Who Work in the Rest of the State:

If the employee works outside of New York City, Nassau County, Suffolk County, and Westchester County, the minimum wage will be:

Effective Date

Minimum Wage

December 31, 2019

$11.80 per hour

December 31, 2020

$12.50 per hour

 

After December 31, 2020, the minimum wage will be adjusted for inflation until it reaches $15.00 per hour.

 

Tipped Employees:

New York allows employers to pay tipped employees a lower cash wage than the state's minimum wage, provided that the employee's tips and direct cash wages equal or exceed the state's minimum wage per hour. The direct cash wage must be at least 66 percent of the applicable minimum wage.


Compliance Recommendations:

Employers with employees who work in New York should ensure compliance with the applicable minimum wage and post an updated minimum wage notice. Please contact your dedicated service professional with any questions.

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