Minimum Wage Rates In New York State

The minimum wage in New York State is currently set at $12.50, as of January 10, 2021. This is higher than the federal minimum wage of $7.25.

However, the minimum wage in the state varies depending on various factors.

In this article, we’ll discuss how New York State’s minimum wage varies between different industries, locations, and types of employers. We’ll also cover the state’s history of wage growth to provide you an idea of what you can expect in coming years.

New York State’s Minimum Wage Rates by Location

How location impacts New York State’s minimum wage is fairly simple. The state is divided into two regions:

• Long Island and Westchester. As of January 10, 2021, The minimum wage on Long Island and Westchester is set at $14.00.

  This rate rises by $1 each year on December 31. The minimum wage in Long Island and Westchester was $13.00 in 2020 and $12.00 in 2019.

• Rest of New York State. The minimum wage is currently set at $12.50 and rises $0.70 each year. The rate was $11.80 in 2020 and $11.10 in 2019.

New York State’s Minimum Wage Rates By Type and Size of Employer

The minimum wage in New York State varies by employer size as follows:

• Small employers (ten or fewer employees). 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 State’s unemployment rate.

  On October 1st, New York’s Commissioner of Labor will announce whether the state will commit to further increasing the $15.00 minimum wage cap.

• Large employers (11 or more employees). 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.

  We’ll find out on October 1st, 2021 whether the cap will be lifted.

New York State’s Minimum Wage Standards By Job Category

In New York State, the Minimum Wage Act (Article 19 of the New York Labor Law) dictates that employers must pay their employees their highest applicable minimum wage.

These Regulations, known as “wage orders,” set different minimum wage rates and standards depending on an employee’s industry.

These minimum wage rates and standards are as follows:

• Farmworkers. The minimum wage for farmworkers is the same as all other types of employees. However, they may be entitled to additional benefits.

  The Minimum Wage Order for Farm Workers only applies to employees working on farms where the total cash remuneration paid by the farmworkers was over $3,000 during the prior calendar year.

  Qualifying farm workers are entitled to:

  1. At least 24 consecutive hours of rest during each calendar week.

  2. Overtime pay amounting to 1.5x their regular pay rate for any hours worked over 60 during each calendar week.

• Fast-food workers. The following minimum wages apply to fast-food workers employed by restaurant chains with 30 or more establishments.

  The minimum wage rate differs by location:

  1. New York City. $15.00 per hour as of January 10, 2021.

  2. Rest of the State. The rate was set at $14.50 per hour on December 31, 2020. This will increase to $15.00 on July 1, 2021.

• App-based drivers. If you drive for ride-sharing apps such as Lyft and Uber, you’re entitled to a different minimum wage than other types of workers.

  This also applies if you drive for food delivery apps such as Doordash and Grubhub.

  As of January 10, 2021, this rate is currently $17.22 per hour after expenses, or $26.51 per hour gross pay.

  The rate was set on December 31, 2018, and has not since increased.

• Tipped workers. Workers that make tips are entitled to different minimum wage rates depending on what type of service employee they are:

  1. Service employees. An example of a service employee is a hotel worker. The minimum wage rate depends on the location of employment:

     • New York City. $15.00 with a $2.50 tip credit.

     • Long Island and Westchester county. $14.00 with $2.35 tip credit.

     • Rest of New York State. $12.50 with a $2.10 tip credit.

  2. Foodservice employees. A common example of this type of employee is a waitress. The minimum wage rate also depends on the location of employment:

     • New York City. $15.00 with a $5.00 tip credit.

     • Long Island and Westchester county. $14.00 with a $4.65 tip credit.

     • Rest of New York State. $12.50 cash wage with a $4.15 tip credit.

     New York State allows employers to meet their workers’ minimum wages by combining their cash wages with a tip credit.

     For example, food service employees are entitled to a $15.00 minimum wage with a $5.00 tip credit.

     If a worker earns $6.00 in tips, their employer can only count $5.00 to satisfy that minimum wage and must still pay them $10.

     If that worker only earned $4 in tips, the employer must pay them the full $11 to meet the $15 minimum.

• Healthcare workers. Healthcare workers are currently only covered by New York State’s basic minimum wage laws.

  However, this is likely to change in the near future as the public and state government both agree that such workers deserve higher compensation for their service during the coronavirus pandemic.

  Roles such as certified nursing assistants earn competitive wages, but many other frontline healthcare workers currently do not.

• Exempt employees. Exempt employees are not covered by the same minimum wage and overtime laws that apply to other types of employees.

  New York allows exemptions for executive and administrative employees that meet minimum salary requirements.

  These requirements differ based on location:

  1. Long Island and Westchester county. $1,050 per week.

  2. Rest of New York State. $937.50 per week.

  There is also a professional exemption under New York State law for employees that satisfy some duty tests. There is no minimum salary requirement under state law, but such employees must still meet the federal minimum of $684 per week.

  Employees that are exempt from the Fair Labor Standards Act may be paid at their state’s minimum wage rather than the federal minimum wage.

  Many New York residents wonder why this law is needed, as the state’s minimum wage is higher than the federal requirement.

  The reason is that many other states have minimum wages that are below the federal requirement. An example is the $5.15 minimum wage of the state of Georgia.

• Trainees and youth. New York State does not establish a different minimum wage for trainees or underage workers.

• Building service workers. This job category encompasses an employee that renders physical services connected with the care, operation, or maintenance of residential businesses.

  Janitors are a common example.

  The minimum wage differs depending on whether the employee is a :

  1. Resident. Building service workers are defined as residents if they live in the building in which they render services or if they live in a separate building within 200 feet from that place.

     The minimum wage also depends on location:

     • New York City. As of January 10, 2021, the rate for employers of all sizes is $10.00 per hour.

     • Long Island and Westchester county. The rate is currently $9.35 per hour and will increase to $10.00 starting from December 31, 2021.

     • Rest of New York State. The minimum wage is $8.35 per hour. The rate on and after December 31, 2021, will be announced on October 1st of the same year.

  2. Nonresident. The minimum wage is the same as listed for resident employees.

     However, employers may consider utility service charges expended for the employee’s private use as part of the minimum wage.

     The limitations for this rule depend on the type of utility service:

     • Gas and electricity. Employers may include the entire expense if the employee’s apartment uses its own exclusive gas or electric meter.

       If the employee’s gas and electricity consumption are registered on the building line meter, then employers may only include $42.00 per month as part of their minimum wage.

     • Telephone bill. The amount in excess of the minimum billing rate may be counted towards the employee’s minimum wage.

     There are no allowances for any other expenses, such as uniforms or tools.

Enforcement of Minimum Wage Laws in New York State

If employers violate New York State’s minimum wage laws, employees may report them to the state’s Department of Labor to collect underpayment on their behalf.

Such employers may be subject to penalties and criminal prosecution.

Additionally, the Commissioner of Labor will require them to pay their employees compensation in the form of:

• Minimum wage underpayments

• Liquidated damages

• Civil penalties and interest up to 200% of all unpaid wages

Author

Chris Kolmar

Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.