It’s 2020, Do You Know Where Your Minimum Wage Rates Are in New York?
In a continuation of New York’s gradual march toward a statewide $15.00 per hour minimum wage rate, effective December 31, 2019, employers throughout New York State and New York City may need to increase the minimum hourly sum payable to workers. The wage will vary depending on your location, your industry, and your business size.
If You Are a New York City-Based Employer, All of Your Workers Must Be Paid $15 Per Hour, Effective December 31, 2019
Many workers in New York City already earn $15 per hour. Specifically, employers with 11 or more employees[1] and all fast food workers currently receive $15 per hour.[2] For employers with 10 or fewer employees, the minimum wage rate is rising from $13.50 per hour to $15 per hour as of December 31, 2019.[3] There are, however, different rules for service employees and food service workers in the hospitality industry who are entitled to a tip credit. Employers with 11 or more employees will see no change, but employers with 10 or fewer employees, will now pay a $10 cash wage with a $5 tip credit.[4]
Are There Different Rules for Workers In Nassau, Suffolk, and Westchester Counties?
Yes, workers located in these counties will not reach the minimum $15 threshold until 2021. As of December 31, 2019, many workers will receive a $1 increase to $13 per hour.[5] The special rules for downstate hospitality industry workers require they now receive an $8.65 cash wage and a $4.35 tip credit.[6] Finally, all fast food workers outside of New York City will receive an increase to $13.75.[7]
And What Are the Rules for the Rest of New York State?
In the balance of the state, the minimum wage will go up 70 cents to $11.80.[8] Hospitality workers outside of New York City, Long Island, and Westchester will receive increases so that they, too, are at this threshold. Accordingly, these employees are entitled to a $7.85 cash wage and a $3.95 tip credit.[9] Also, all fast food workers outside of New York City will receive an increase to $13.75 which will gradually rise to $15 on July 1, 2021.[10]
The year by which the balance of workers in the rest of New York State will earn the $15 minimum wage has not yet been fixed, and, aside from the increase to $12.50 as of December 31, 2020, the Department of Labor will publish additional information on this issue by October 1, 2021.[11]
These are the highlights of the new minimum wage requirements. If you would like to discuss your situation with us, please feel free to call or email us at any time. You will be on the phone with an attorney within 24 hours.
[1] https://www.ny.gov/new-york-states-minimum-wage/new-york-states-minimum-wage
[2] https://www.labor.ny.gov/formsdocs/factsheets/pdfs/p716.pdf
[3] https://www.ny.gov/new-york-states-minimum-wage/new-york-states-minimum-wage
[4] https://www.labor.ny.gov/legal/counsel/pdf/tips-frequently-asked-questions.pdf
[5] https://www.ny.gov/new-york-states-minimum-wage/new-york-states-minimum-wage
[6] https://www.labor.ny.gov/legal/counsel/pdf/tips-frequently-asked-questions.pdf
[7] https://www.labor.ny.gov/formsdocs/factsheets/pdfs/p716.pdf
[8] https://www.ny.gov/new-york-states-minimum-wage/new-york-states-minimum-wage
[9] https://www.labor.ny.gov/legal/counsel/pdf/tips-frequently-asked-questions.pdf
[10] https://www.labor.ny.gov/formsdocs/factsheets/pdfs/p716.pdf
[11] https://www.ny.gov/new-york-states-minimum-wage/new-york-states-minimum-wage